Credits on Bill Payments

To fix the issue of vendor credits being automatically applied when you pay a bill, you need to disable the Automatically Apply Vendor Credits setting in QuickBooks Online. To do this, follow these steps:

• Go to Settings > Accounting > Preferences.
• Click the Bills & Payments tab.
• In the Credits section, uncheck the Automatically Apply Vendor Credits box.
• Click Save.

Once you have disabled this setting, QuickBooks Online will no longer automatically apply vendor credits when you pay a bill. You will need to manually apply vendor credits to bills as needed.

If you have already disabled all automations in QuickBooks Online and the Automatically Apply Vendor Credits setting is still enabled, then the issue may be caused by a third-party app or integration. To troubleshoot this, you can try disabling all third-party apps and integrations and then see if the issue persists. If the issue is resolved, then you can re-enable the third-party apps and integrations one by one to identify which one is causing the problem.

If you are still having trouble disabling the Automatically Apply Vendor Credits setting, you can contact QuickBooks Support for assistance.

Welcome to the Community, @Chrissky676.

I'm here to share insights about vendor credits automatically applied when paying bills.

In QuickBooks Online, if the automation is enabled and there is an available vendor credit, the bill will be automatically paid with enough amount. 

While if it is disabled and there is an available vendor credit, it will automatically show in the vendor credit box when paying bills. However, you can delete and leave it empty before saving the payment. You can also delete the vendor credit itself.

Here is an article to learn more about managing vendor credits in QuickBooks Online: Enter vendor credits and refunds in QuickBooks Online.

For future reference, you can read this article about running reports: Run reports in QuickBooks Online.

Let me know if you have questions about vendor credits. I'm always here to help. Have a great day.

Hello,

This has been an on-going issue for me and my clients.  The instructions you provided are for QuickBooks Desktop, not QB Online.  There's no way to turn off the "Apply Vendor Credits" option in QB Online as far as I can see.  I've also called QB Online directly several times on this issue and they all tell me there's no way to turn off this option.  

If anyone has any ideas, I would love to hear how you resolved this issue.  Even when I zero the amounts in the Vendor Credit Column when I'm posting Vendor Payments, if I go back into the payment, QB Online overrides the payment I posted and applies the Vendor Credits to all open Vendor Credits...very frustrating! 

Hi there, @Agape D. I understand how being unable to turn off the automatically apply credits feature affects your transactions. Allow me to share some information and walk you through some steps to resolve this issue.

Yes, there's no option to disable vendor credits in QuickBooks Online. We can only turn off the Automatically apply credits feature for customer invoices. 

In the meantime, let's isolate this issue and access the transactions via incognito or private window. This allows us to determine whether the problem is due to browser caching. Too much data stored in the browser affects your account's performance. To proceed, refer to these keyboard shortcuts:

• Ctrl + Shift + N for Google Chrome browser
• Ctrl + Shift + P for Mozilla Firefox & Microsoft Edge browsers
• Command + Shift + N for Safari browser

After that, open the bill payments again and see if the vendor credits automatically apply. If this works, I recommend clearing the cache in your default browser to refresh the system. Using other supported browsers also aids in narrowing down the problem.

In case you'll want to delete the vendor credits, follow the steps below:

1. Go to the Expense menu, then select the Vendors tab.
2. Locate the name of the vendor.
3. Under the Transaction List, mark the check box beside credit and click Delete under the View/Edit. 
   
4. Press Yes to confirm.

To learn different ways to record a refund or credit from a vendor, refer to this article: Enter vendor credits and refunds in QuickBooks Online.

I'm adding a few resources below to help you with managing vendors and their transactions and discover helpful tutorials:

• Expenses and vendors
• Watch step-by-step videos to learn your way around QuickBooks

These steps should verify if the strange behavior is a browser issue. I'd like to know how you get on, as I want to ensure we resolve this for you. Kindly update this thread if you have additional questions about this vendor topic or other program concerns. Have a nice day!

I don't want to have to go through and unapply the credit amount to 10 different invoices each time I go to pay a statement, it shouldn't automatically put in an available credit amount.  I would like to input the amount myself when I need to.  This isnt a convenience, it's needless pain.  And when you miss one of these credits its a complete nightmare to go back and unapply and deal with that and reapply to the correct invoice.  Its pretty simple, dont apply the credit amount for us in the pay bills screen.  I've seen comments now from hundreds of different people, this should be a pretty easy fix.

Simply begin in the new CHECK screen, rather than the PAY BILLS screen.  Select the Vendor you want to pay bills and credits for (separately, not auto-applied).   On the right side of the CHECK screen, all of your vendor's bills and credit memos will show up.  Select the first BILL you want to pay.   The screen CHANGES to Bill Payment!  Now you see a LIST of Bills and Credit Memos to select.   All the way down at the bottom, the Credits will be listed separately -  and can be applied to the payment as a whole, not  specifically towards any particular Bill.  Let me know if this helps!