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Level 1

how to enter a debit memo in quickbooks online

It seems our vendor applied credits to open invoices and we also took them in one of our payments.  How do I enter a debit memo to show we still owe that money through quickbooks online?

3 Comments
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Moderator

how to enter a debit memo in quickbooks online

Welcome to the QuickBooks family, @simplysweet02.

 

I can help you sort this out so you can get back on track. However, we need more information about it to provide the right resolution and to get this sorted out promptly.

 

Did you also create a payment during the time they used the credits? Any additional information you can provide will help ensure a timely solution.

 

If a vendor applies credits to open bills, you can also record them the same way in QuickBooks Online. You can use the Vendor Credit option to add and apply the credits to your future transactions.

 

In case you need the detailed steps, here's how:

 

  1. Click the + New option. 
  2. Select Vendor credit or Receive vendor credit1.JPG
  3. In the Vendor drop-down, choose the vendor.
  4. Depending on how you record purchases with this vendor, enter the Category details or Item details.
  5. Hit Save and close

Once done, you can proceed with applying it toward any open or future bill. Whenever you're ready, you can follow these steps:

 

  1. Click the + New option.
  2. Select Pay bills.
  3. Choose a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field. 3.JPG
  4. Enter necessary information.

Additionally, I recommend the following resource which contains detailed steps of the process, as well as for those in Online Bill Pay:

 

Please let me know if there is anything else I can do to help by clicking the Reply button below. Have a great day ahead.

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Level 1

how to enter a debit memo in quickbooks online

Thank you, but that isn't what I need to do.  They applied credits to open invoices and we didn't know so we paid them with a check.  Now, since we took the credits twice, I need to record a debit memo to show that we owe the money.  I assumed it would just be entering a bill, but my boss says no.  That it has to be a debit memo.  I can't find anything on how to do this.

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QuickBooks Team

how to enter a debit memo in quickbooks online

Thank you for the detailed information, @simplysweet02.

 

We'll notify the previous reply by my colleague to update the answer.

 

For this, if the Invoice(Bill) from your Vendor has already marked as paid. For the Credit given by your Vendor, just create a Vendor Credit. So the Balance will show a Negative Value which can be applied to the next Purchase/Bill.

 

Here's how:

  1. Go to the +New button, select Vendor Credit.
  2. From the Vendor Credit window, choose the vendor who issued the credit.
  3. Enter the date of the credit.
  4. Put the credit amount.
  5. In the Account Details section, select the account used in the original section.
  6. Click Save and Close.

 

Also, you can check out this related article entering a credit: Enter Credit from a Vendor.

 

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

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