Credit from vendor to Credit card after payment had been made

Thomas1888 · ‎May 06, 2024

We paid for some materials which are applied at this time. However delivery was not possible, we had a credit issued back to the credit card. To reconcile the credit card a credit card credit was made which was matched. however a Negative balance now exists on the bill, what transaction do i need to create to zero out this transaction

ArielI · ‎May 06, 2024

Thank you for posting here in the Community, @Thomas1888.

Since the refund has been done. Let's work together and go through the steps you can consider removing the negative balance that exists on your bill. Since you have paid for the materials, we'll have to make sure to properly record the payment in QBO to mark the bill as paid. Here's how:

Go to the Expenses, then Bills.
Head to the Unpaid section choose the appropriate bill.
Choose Mark as paid from the Action drop-down arrow.
From the Bank/Credit Account drop-down, select your credit card.
Enter the amount and other necessary info.
Hit Save and close.

Once you've completed these steps, you'll also want to review the credit card credit you've created. Let's make sure that category used or items added is the as the original bill.

Go to the Expenses tab.
Locate and open the credit card credit in the Expenses tab.
Double-check the category and items.
Make the necessary changes.
Hit Save and close.

I've also attached this article that shows more detailed steps to managing credits and reimbursements from your vendor: Enter vendor credits and refunds in QuickBooks Online.

For future help, you can get a report on all money paid to a vendor for the year and apply appropriate customization to display data: Run a report with vendor totals.

If you have any further questions or need assistance with managing your bills, please don't hesitate to ask. We're here to help you make the most of QuickBooks Online and ensure that your financial reporting is accurate and efficient.

Thomas1888 · ‎May 07, 2024

I had already done these steps, he Bill was already been marked as paid by the credit card payment prior. The credit was created however the credit now shows up on the bill as a negative. What i want is to zero out the balance showed as it should not show as a negative as the refund should cancel out the original purchase.

MichaelaS · ‎May 07, 2024

Thanks for working on the steps provided, Thomas1888.

I see how you want to ensure the accuracy of the bill balance. It's normal for the credit and bill payment to show negative to indicate payment and refund issued. As long as the vendor balance remains unaffected, there's no need to modify the total bill balance.

To verify these, check the Credit card account by going to Chart of Accounts from the Transaction menu on the left panel to ensure the balance shows zero. This is how it should look like. Please refer to the screenshot below.

Additionally, I'm adding this article to guide you in pulling up a report if you need: Run reports in QuickBooks Online.

Keep us posted if you have further queries about the bill balance. We're always here to help. Take care.

Topics

Training

Community

Resources

Credit from vendor to Credit card after payment had been made