Entering a bill that also has charges and credits on it

jroneill · ‎August 08, 2023

Hi all!

I am entering a bill that has some credits and normal charges on it. It ends up as a credit balance. I am just trying to figure out how to put the whole bill in the system.

For example

service charge $30

regular service $50

**CREDIT** correction for past service $120

Credit Balance of $40

I want to enter this all as one unit instead of making a credit AND a bill. Can I do that?

GlinetteC · ‎August 08, 2023

Entering a bill that has charges and credits isn't possible, jroneill.

QuickBooks doesn't allow you to enter a negative amount on a Bill. Therefore, if you receive a correction for service, you need to record it as a separate transaction. Once done, you can apply it to the Bill. It's a simple way to ensure your records are accurate and up-to-date in QuickBooks.

To enter a separate credit:

From the Vendor menu, select Enter Bills.
In the Enter Bills window, choose the radio button option for Credit at the top.
Then select the name of the vendor who issued the credit.
Enter the date you received the credit.
Then enter the amount into the Credit Amount field.
Then select the affected accounts or items on the Expenses or Items tabs at the bottom of the window.
Click Save & Close.

To apply the credit to a bill:

From the Vendor menu, select Pay bills.
Choose the bill that you wish to be paid.
Click the Set Credits button at the bottom to apply credits.
Once done, click on Pay Selected Bills.

I'll add this article to see the complete list of workflows and vendor-related transactions for another task: Accounts Payable workflows in QuickBooks Desktop.

If you need additional help in handling your vendor credit or any other tasks, feel free to inform me. I'm here, ready to assist you promptly.

View solution in original post

GlinetteC · ‎August 08, 2023

Entering a bill that has charges and credits isn't possible, jroneill.

QuickBooks doesn't allow you to enter a negative amount on a Bill. Therefore, if you receive a correction for service, you need to record it as a separate transaction. Once done, you can apply it to the Bill. It's a simple way to ensure your records are accurate and up-to-date in QuickBooks.

To enter a separate credit:

From the Vendor menu, select Enter Bills.
In the Enter Bills window, choose the radio button option for Credit at the top.
Then select the name of the vendor who issued the credit.
Enter the date you received the credit.
Then enter the amount into the Credit Amount field.
Then select the affected accounts or items on the Expenses or Items tabs at the bottom of the window.
Click Save & Close.

To apply the credit to a bill:

From the Vendor menu, select Pay bills.
Choose the bill that you wish to be paid.
Click the Set Credits button at the bottom to apply credits.
Once done, click on Pay Selected Bills.

I'll add this article to see the complete list of workflows and vendor-related transactions for another task: Accounts Payable workflows in QuickBooks Desktop.

If you need additional help in handling your vendor credit or any other tasks, feel free to inform me. I'm here, ready to assist you promptly.

jroneill · ‎August 08, 2023

Ok thats what I thought. It's dumb.

I'll process it the way you mentioned.

lmoCDS · ‎November 11, 2023

@jroneill

It is not dumb. It is SO common of a workflow. I do negatives on bills. I have chargeback items created in my products and services. I enter negative amounts on the bill and it takes off the total. The credit way makes the biggest mess in workflow for me anyway.

jroneill · ‎November 13, 2023

I just tried again. It's letting me do negative lines now. I swear I wasn't able to do this before. The QB person even told me I couldn't put a negative on a bill.

I thought it was dumb that a separate credit would have had to have been issued in QB if a vendor just put a credit on an invoice. From what I can see, everything should be ok now and I can process stuff exactly the way you were doing.

Jenn701 · ‎December 15, 2023

Hi, I am having the same problem. I have a invoice with a credit and the items that we purchased. I want to keep it all on that bill to keep things straight. Can you tell me how you applied the credit with the charges? I am new to QuickBooks, and sometimes I am at a loss as to what to do. And as far as the account to attach the credit to, is it the same as the expense account as I am working with?

Thank you !!

Jenn

MJoy_D · ‎December 15, 2023

I can share some information about entering credits to your bills, @Jenn701.

When you receive a credit, you can record it as a bill credit and apply it when processing a bill payment. Yes, the credit will be attached to the same expense account.

Here's how to record a Bill Credit for the amount of the credit:

Go to the Vendors menu, then select Enter Bills.
Select the Credit radio button.
Enter the Vendor name.
Select the Expenses tab and enter the Accounts affected.
Provide all the necessary information.
Click on Save & Close.

When processing bill payments:

Go to the Vendors menu and select Pay Bills.
Tick the check box of the bill.
Select Set Credits and apply the Bill Credit you created earlier then select Done.
Click on Pay Selected Bills and then select Done.

Here's more information about recording a vendor refund in QuickBooks Desktop. It'll guide you in recording refunds or credits you received from a vendor. Choose the appropriate scenario and follow the recommended steps to record the refund in QuickBooks.

For detailed guidance on running and customizing vendor reports, check out these articles. They provide more information on vendor reports that help you track your company's expenses and accounts payable:

Let me know if you need further information about adding and applying credits to your bill. I'm always here to assist. Have a wonderful day!

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Entering a bill that also has charges and credits on it