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Creating Bills vs Not Creating Bills

Hello. We are a non-profit organization. Currently, I have not been entering bills into the system. When I pay a bill, I've just been creating a check (or EFT payment) and posting it to the corresponding account. I have one vendor that we often send returns to and we will carry a credit balance until the next year when we reorder (Vacation Bible School supplies) and then the credit is applied against the next invoice. I also have a vendor that we recently overpaid due to a billing error on their part. 

 

Considering these situations, should I enter bills for the few (maybe 8-10) vendors we routinely pay? How do I manage the credit memos issued by vendors when there is no bill? 

 

I'm learning as I go and I am so thankful for this forum. 

 

robin

1 Comment
QuickBooks Team

Re: Creating Bills vs Not Creating Bills

Hello there, @tcba2016.

 

You'll want to create a bill to record a vendor's credit. Once it's paid, you'll see the available credits at the bottom of the screen. I'll walk you through how.

 

To create a vendor's credit:

  1. Click Vendors, then Enter Bills.
  2. Click the Credit radio-button at the top. Then, enter the credit details or click the Items tab.
  3. Click Save & Close.

To apply the credit to a bill:

  1. Click Vendors, then click Pay Bills.
  2. Select the bill under Show bills section.
  3. Scroll down towards the Discount & Credit Information For Highlighted Bill section, click the Set Credits button.
  4. Click the Credits tab, then mark credit balance to use.
  5. Click Done. Then, click Pay Selected Bills.
  6. Click Done when prompted.

Once done, you can pull up the Transaction List by Vendor report to see the vendor's payment, bill, and the credit's applied.

 

Here's how:

  1. Click Reports.
  2. Click Vendors & Payables, and then Transaction List by Vendor.
  3. You can also click on the Customize Report button at the top to filter the report.

Additionally, you can find these transactions in the vendor's profile. The credit is posted in the Balance Total column.

 

I've added these articles for future reference: 

Keep me posted if you have other questions. I'm always here to help.

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