How to credit a credit card

Hello,

You can click the NEW button and select CREDIT CARD CREDIT.

The Payee will be your vendor

The Bank/Credit account will be the credit card account they issued the credit to

Below for CATEGORY, use the same expense account that you originally used when doing the charge for that vendor.  That way it reduces the expense for that expense account and also increases the available credit back onto your credit card.

I do not know what you mean by click NEW. IS that NEW EXPENSE? There is no CREDIT CARD CREDIT under the EXPENSE tab. I'm using Inuit Online Quickbooks if that makes a difference.

Hello, meganrosecransps. 

Thanks for getting back to us. I'm here to clarify the steps provided by MarshallA.

What MarshallA meant is that the + New button is located on the left panel. To elaborate the steps: 

1. Click the + New button, then select Credit card credit. 
2. Under Payee, select the vendor's profile. 
3. For the Bank/Credit account drop-down menu, choose your credit card account. 
4. Enter the same expense account or item you bought from the vendor. 
5. Add the amount refunded.
6. Enter any other important details such as memo, reference number, etc..
7. Once done, click Save and close. 

Doing this will decrease your credit and the expense accounts' balances. 

If you need help managing your credit card account, visit this article for more details: Record your payments to credit cards.

Need to reconcile your credit card account? You can check this article for the workflow: Reconcile an account in QuickBooks Online.

I'll help you manage your transactions or records in QuickBooks Online again. Just lay down the details in your reply and I'll get back to you with the guides and such. 

OK, but I have a credit from a return that was done exactly per your directions.  I see it.  It is listed under vendor transactions, but when I go to "pay bills"  QB wants to cut a check without credit applied, and there is no credit available in the "pay bills" screen.   How in the world do I pull them together?

Hi there, @TownlineMachine. I'll share a different way to apply vendor credit to bills successfully.

The instructions above are for credit cards, which allows you to borrow money from a financial institution to cover the cost of purchases. Credit card credit is the transaction in QuickBooks used to record vendor refunds on a credit card. That's why it's listed under the vendor transactions but won't show as your vendor credit.

However, since you mentioned going to the Pay bills page to link the vendor credit, you can delete the credit card credit. If you'd like to apply the credit to a bill, create a vendor credit by following the steps below.

1. Go to + New and select Vendor credit.
2. In the Vendor ▼ dropdown, choose your vendor.
3. Enter the Category details or Item details depending on how you record purchases with this vendor.
4. Click Save and close.

Once done, you can apply a vendor credit toward any open or future bill. I'll show you how:

1. Select + New and click Pay bills.
2. Pick a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
3. Complete the rest of the fields.

Here's an article to learn different methods of recording a credit accordingly: Enter vendor credits and refunds in QuickBooks Online.

Feel free to check this guide about tracking bills and their payments: Enter and manage bills and bill payments in QuickBooks Online.

Please let me know if you need clarification about the process, or if there's anything else I can do for you. I'll be standing by for your response. Take care.