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micheal-bendit
Level 2

Bill Credit Issue

I received a vendor credit from a paid bill in QB Desktop Enterprise Contractor edition. I recorded the deposit in banking. When I go to do my monthly bank rec, the credit doesn't show up to balance the reconciliation. the check we originally wrote has been cleared and reconciled.

Solved
Best answer May 11, 2021

Best Answers
AlcaeusF
Moderator

Bill Credit Issue

Hello @micheal-bendit,

 

I appreciate you for getting back to us here in the Community. Allow me to chime in and help you reconcile your account successfully in QuickBooks Desktop.

 

I've read the thread and was able to get a clearer picture regarding your issue. I can share some information about how to handle a scenario like this in the system.

 

There are three steps you need to perform. This applies to those who received a refund check from a vendor for a paid bill.

 

You need to record a Deposit, Bill Credit and link both of them in QuickBooks. Since you've already added the deposit in banking, I recommend opening it from the bank register and make changes to the details.

 

Let's replace the account selected in the deposit with Accounts Payable. This way, you'll be able to link them in the last part of the process. 

 

Please follow these steps:

 

  1. Click the Lists tab at the top menu bar, then select Chart of Accounts.
  2. Double-click the account.
  3. Search for the deposit.
  4. Double-click to open the deposit.
  5. Change the account to Accounts Payable
  6. Hit Save & Close.

 

Once done, proceed by recording a bill credit for the refunded amount. Here's how:

 

  1. Click the Vendors tab at the top menu, then select Enter Bills.
  2. Choose the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Select the Expenses tab and enter the Accounts on the original bill.
  5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
  6. Hit Save and Close.

 

Lastly, link the deposit to the bill credit through these steps:

 

  1. From the Vendors menu, select Pay Bills.
  2. Check the Deposit that matches the Vendor check amount.
  3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
  4. Select Pay Selected Bills, then select Done.

 

After following these steps, you should be able to reconcile your account without any problem.

 

For more information, as well as some guide in case you encounter different scenarios in recording refunds, I recommend the following article: Record a vendor refund in QuickBooks Desktop.

 

Drop me a comment below if you have any other questions related to the credit. I'll be happy to help you some more.

View solution in original post

5 Comments 5
Ryan_M
QuickBooks Team

Bill Credit Issue

Hi @micheal-bendit,

 

I'm here to lend you a hand with reconciliation in QuickBooks Desktop (QBDT).

 

During the reconciliation process, I suggest you locate the deposit you recorded as the bill credit. As long as the amount on the deposit is correct, your online bank balance will agree with your actual bank balance. 

 

Refer to this article for steps on how to record refunds from your vendor: Record a vendor refund in QuickBooks Desktop. It lists different scenarios where you'll receive a vendor refund, and how to enter them in QBDT. 

 

In case you bump into other issues during this current reconciliation period or in the future, keep this article for reference: Fix issues when you're reconciling in QuickBooks Desktop.

 

Let me know if there's anything else I can assist you with on your QBDT company. I'll be glad to assist you further. 

micheal-bendit
Level 2

Bill Credit Issue

Thank you Ryan,

When I select the deposit, it makes my difference out of balance. see attached. I'm thinking I should have a corresponding negative amount on the Checks and Payments side to balance. Is that correct?

MirriamM
Moderator

Bill Credit Issue

Hello again, micheal-bendit.

 

Yes, you're correct. The transactions in the Checks and Payments section should be balanced with the Deposits and Other Credits. So this can match when reconciling account in QuickBooks Desktop.

 

For your guide when doing reconciliation, you can open this link: Reconcile an account in QuickBooks Desktop.

 

If you have any other additional questions about your transactions, please let me know by adding a comment below. I'm more than happy to help. Have a good one!

micheal-bendit
Level 2

Bill Credit Issue

Hello Mirriam,

My dumb question is: how do I get the negative amount to show up to make it balance? Thank you in advance!!

AlcaeusF
Moderator

Bill Credit Issue

Hello @micheal-bendit,

 

I appreciate you for getting back to us here in the Community. Allow me to chime in and help you reconcile your account successfully in QuickBooks Desktop.

 

I've read the thread and was able to get a clearer picture regarding your issue. I can share some information about how to handle a scenario like this in the system.

 

There are three steps you need to perform. This applies to those who received a refund check from a vendor for a paid bill.

 

You need to record a Deposit, Bill Credit and link both of them in QuickBooks. Since you've already added the deposit in banking, I recommend opening it from the bank register and make changes to the details.

 

Let's replace the account selected in the deposit with Accounts Payable. This way, you'll be able to link them in the last part of the process. 

 

Please follow these steps:

 

  1. Click the Lists tab at the top menu bar, then select Chart of Accounts.
  2. Double-click the account.
  3. Search for the deposit.
  4. Double-click to open the deposit.
  5. Change the account to Accounts Payable
  6. Hit Save & Close.

 

Once done, proceed by recording a bill credit for the refunded amount. Here's how:

 

  1. Click the Vendors tab at the top menu, then select Enter Bills.
  2. Choose the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Select the Expenses tab and enter the Accounts on the original bill.
  5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
  6. Hit Save and Close.

 

Lastly, link the deposit to the bill credit through these steps:

 

  1. From the Vendors menu, select Pay Bills.
  2. Check the Deposit that matches the Vendor check amount.
  3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
  4. Select Pay Selected Bills, then select Done.

 

After following these steps, you should be able to reconcile your account without any problem.

 

For more information, as well as some guide in case you encounter different scenarios in recording refunds, I recommend the following article: Record a vendor refund in QuickBooks Desktop.

 

Drop me a comment below if you have any other questions related to the credit. I'll be happy to help you some more.

View solution in original post

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