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Level 2

CREDIT MEMO FROM MY VENDOR TO ME

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I have a credit memo to me from my vendor.  What do I do so that when I pay one or their next bills to me, I can then apply it and use it?

Solved
Best answer 04-22-2019

Best Answers
Highlighted
QuickBooks Team

CREDIT MEMO FROM MY VENDOR TO ME

Hi @UNDERDOG2853,

 

Vendor credits are recorded when you receive refunds from your vendor.  It'll be my pleasure to help you record and apply your vendor credit to your vendor balance.

 

Vendor credits can be used to pay to next bills. But before applying the vendor credit, you'll first need to enter it in QuickBooks. Here's how:

  1. Click on the Plus (+) icon, choose Vendor Credit.
  2. Enter the vendor name.
  3. Enter the necessary information.
  4. Click on Save and Close.

Once done, you can now apply the vendor credit to your bill. You may follow these steps:

  1. Click on the Plus (+) icon, choose Expense or Check.
  2. Enter the vendor name.
  3. On the Add to Check/Expense section, select Add on the outstanding bill and vendor credit.
  4. Click on Save and Close.

I've attached an article that you may read in your free time: Manage Vendor Credits.

 

Don't hesitate to let me know if you have any other concerns. I'll be around to help.

View solution in original post

11 Comments
Highlighted
QuickBooks Team

CREDIT MEMO FROM MY VENDOR TO ME

Hi @UNDERDOG2853,

 

Vendor credits are recorded when you receive refunds from your vendor.  It'll be my pleasure to help you record and apply your vendor credit to your vendor balance.

 

Vendor credits can be used to pay to next bills. But before applying the vendor credit, you'll first need to enter it in QuickBooks. Here's how:

  1. Click on the Plus (+) icon, choose Vendor Credit.
  2. Enter the vendor name.
  3. Enter the necessary information.
  4. Click on Save and Close.

Once done, you can now apply the vendor credit to your bill. You may follow these steps:

  1. Click on the Plus (+) icon, choose Expense or Check.
  2. Enter the vendor name.
  3. On the Add to Check/Expense section, select Add on the outstanding bill and vendor credit.
  4. Click on Save and Close.

I've attached an article that you may read in your free time: Manage Vendor Credits.

 

Don't hesitate to let me know if you have any other concerns. I'll be around to help.

View solution in original post

Highlighted
Level 2

CREDIT MEMO FROM MY VENDOR TO ME

That was simple enough. 

For some reason, when I saw vendor credit, my thought was that's not it, I'm not giving the vendor a credit, I am getting one from the vendor!

Chalk it up to being Monday!

Highlighted
Level 2

CREDIT MEMO FROM MY VENDOR TO ME

THANK YOU! :)

That was simple enough. 

For some reason, when I saw vendor credit, my thought was that's not it, I'm not giving the vendor a credit, I am getting one from the vendor!

Chalk it up to being Monday!

Highlighted
Level 1

CREDIT MEMO FROM MY VENDOR TO ME

Does not work if you do not have open invoices/bills from vendor.

Highlighted
QuickBooks Team

CREDIT MEMO FROM MY VENDOR TO ME

I'm glad you came here, Josh B.

 

You got it right. If you have received a credit from a Vendor and apply it to the Bill, you're unable to add a credit for a vendor without having an open bills.

 

If you received a refund from a vendor, you can also use a Vendor Credit. To achieve this, just make Bank deposit under Accounts Payable A/P to offset the credit and consider it as refund received from your vendor.

 

Here's how:

  1. Click the + New button and click Bank deposit.
  2. In the Add other funds to this deposit section, fill in the following fields: 
         Received from: Select or enter the vendor name.
         Account: Select the Account payable account.
         Amount: Enter the check amount.
  3. Select Save and Close.

Once done, you can link the deposit to vendor credit:

  1. Click the + New button and click Check.
  2. Select Choose a payee drop-down arrow, and click the vendor name.
  3. Provide the Check #DateAmount and Memo fields blank.
  4. From the Add to Check sections, select Add for the outstanding vendor credit and deposit.
  5. Hit Save and Close.

I've got this article about vendor credits and refunds for your reference.

 

Let me know if you have any follow-ups or other questions. I'm always here to help. Wishing you a good one.

Highlighted
Level 1

CREDIT MEMO FROM MY VENDOR TO ME

so with the basic qbo it doesn't allow me to enter credit from vendor.  How could i journal it since QBO doesn't have that service

Highlighted
Moderator

CREDIT MEMO FROM MY VENDOR TO ME

Vendor credit is unavailable in QuickBooks Simple Start, dm6310.

 

You can record this credit as bank deposit in QuickBooks. Here's how:

  1. Click the + New button on the left pane.
  2. and click Bank deposit.
  3. In the Add other funds to this deposit section, fill in the following fields: 
         Received from: Select or enter the vendor name.
         Account: Select the Account payable account.
         Amount: Enter the check amount.
  4. Select Save and Close.

I'll be here if you have additional questions.

Highlighted
Level 1

CREDIT MEMO FROM MY VENDOR TO ME

That does not work.  I have qbo basic, when i do what you say it takes me to the page to upgrade.  I don't want to upgrade, i just want to apply a vendor credit

Highlighted
Moderator

CREDIT MEMO FROM MY VENDOR TO ME

Hi, dm6310.

 

When a browser stored a lot of caches, it could cause problems like bringing up the data to your account or latency issue. As an initial step, you can press the F5 key on your keyboard to refresh the page.

 

If you're still getting the same result, we can do some of the basic troubleshooting steps. You can use these shortcut keys depending on the browser you're using:

 

  • Google Chrome: press Ctrl Shift N.
  • Mozilla Firefox: press Ctrl Shift P.
  • Internet Explorer: press Ctrl Shift P.
  • Safari: press Command Shift N.

If you're able to access the Bank Deposit section using the private browser, let's clear the browser's cache. However, if you wish to record this transaction via the journal entry, the assistance of an accountant is a must to help and guide on which account to debit and credit.

 

Here are additional references that might be helpful for future use:

 

I always got your back if there's anything else I can help you with. Take care.

Highlighted
New Member

CREDIT MEMO FROM MY VENDOR TO ME

For the Simple Start plan, a bank deposit appears to be the correct route.  However, does the deposit going to accounts payable resolve the original expense? Doesn't that leave the original expense at its full amount?

Highlighted
QuickBooks Team

CREDIT MEMO FROM MY VENDOR TO ME

Hello, @sflaa1.

 

No, the deposit assigned as accounts payable will not fix the real amount of the expense. The accounts payable should be connected to an expense account for it to be deducted from the initial amount. If not, then it's just being deposited and will not affect the original amount.

 

You can create a journal entry to offset the amount of the original expense. Here's how to create a journal entry:

 

  1. Click the + New icon.
  2. Under Other, select Journal Entry.
  3. Select the liability account, where you deposited the payment and how much was the vendor credit.
  4. Fill out all the needed information.
  5. Hit Save and Close.

 

I suggest consulting your accountant as to which accounts should be selected to offset the original amount of the payment.

 

You can also refer to this article to understand more about the chart of accounts in QuickBooks Online: Understand the Chart of Accounts In QuickBooks Online.

 

Keep in touch with me if you have other questions. I'd be glad to assist you. Have a good day and you take care!

 

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