We accidentally paid a vendor twice for the same service.
1) I figured I can create a vendor credit and match the banking transaction to that credit and then apply the credit to pay a future bill.
2) What category should I choose for the credit?
To be clear, the vendor did not send us a refund. We simply overpaid him. Am I approaching this the right way? And what's the way to handle #2 above?
Thanks so much
Hello there, @haskenazi1
Thanks for choosing Intuit QuickBooks. I can share some insights about vendor credits in QuickBooks Online.
You're correct. Overpaying a vendor may lead to a vendor credit in QBO. You can use that credit to pay for the future transaction with your vendor.
Moreover, you'll have to make sure that the vendor credit is entered in QBO and apply it to a bill right before you can match it your downloaded transactions.
Your situation is the same for scenario 2 on the Manage vendor credits article. You can follow the steps below on how to enter the vendor credit and pay the future bill using it.
How to enter the vendor credit:
Next, pay the bill using the credit:
After recording the transactions, you should be able to match it to your online banking transactions.
Let me know how it goes, @haskenazi1. Please remember I'm here anytime you have additional questions or concerns with QuickBooks Online. You can reach out by posting a response below. Wishing you all the best!
Thank you for your answer but I am still missing the answer to the question "which category/item do I choose within the vendor credit screen".
1) I paid a vendor twice for the same service. So one payment was matched to the bill. The other is still in my transactions register waiting to be matched to a vendor credit.
2) I haven't yet created the vendor credit bc I am not sure which category/item to use
Allow me to jump in, haskenazi1.
You can choose Accounts Payable using an expense transaction. Let me provide further explanation.
Once you're done creating an expense, you can apply this transaction to a future bill, or create deposit under Accounts Payable if the vendor refund the overpayment to your account.
To create an expense:
Then, follow these steps to apply the expense to the bill:
I've attached a screenshot below, so you'll know what I'm referring to.
For more information about recording deposits in QuickBooks Online (QBO), refer to this article: Record and Manage Bank Deposits.
Let me know how it goes by leaving a comment. I'll be here to keep helping.