Apply Journal Entry Credit to Vendor Bill

Use Pay Bills to apply the credits that journals that post to your AP account will create. That's the only way to do it.

What do you mean when you write that you're not allowed to do this?  I've never heard of that and so not sure what you're seeing.

A journal credit was created on the vendor account when funds were journaled to it from another account.  How do I apply that journal credit to a bill on that vendor account?  That's what I mean.  I cannot use the set credit option because I get the following message:  "You can't set discounts or credits to pay bills through QuickBooks Bill Pay Service."

I don't know what to do about that.

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@DA2018 wrote:

A journal credit was created on the vendor account when funds were journaled to it from another account.  How do I apply that journal credit to a bill on that vendor account?  That's what I mean.  I cannot use the set credit option because I get the following message:  "You can't set discounts or credits to pay bills through QuickBooks Bill Pay Service."

 

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The journal needs to use the AP account in order for it to create a credit.

I've never heard of that message, and it sounds really lame. Why shouldn't you be able apply credits? That makes no sense. In any case, there must be some way to indicate you don't intend to use the bill pay service (whatever that is) for the current transaction. At least I'd think so.

Did you find a solution to this? I am trying to apply credits to a vendor bill and I am getting the same error message. It never used to do this!

The Community has you covered, @KC_Reiter! I'll help you get that credit applied to a vendor bill.

I've got some troubleshooting steps you can perform to isolate the issue. Let's run the Verify/Rebuild tool. Verify will detect any damaged data. Rebuild will attempt to fix the damaged data detected. It also allows your QuickBooks software to refresh the data inside the company file. Make sure to create a backup copy of your company file before doing the process. If there are changes that occur, having a backup copy allows you to restore it to undo the changes.

Follow the steps below on how to verify data:
 

1. On the top menu, click File.
2. Choose Utilities.
3. Select Verify Data.
   
4. Click OK when you see the message, QuickBooks detected no problem with your data.
5. If Verify finds an issue with your data, you'll be prompted to Rebuild Now or View Errors.
6. Click Close or View Errors and take note of the specific error message.

Next, here's how to rebuild data:
 

1. On the top menu, click File.
2. Choose Utilities.
3. Select Rebuild Data.
   
4. Click OK if you receive a prompt to back up your company file.
5. Click OK when you get the message, Rebuild has completed and proceed to the next step.
6. Run Rebuild Data again to make sure there's no error.

Additionally, make sure your QuickBooks Desktop is up-to-date. This way, you always have the latest features and fixes.

Visit me here again in the Community and keep me posted on your progress with this issue. I'd be happy to assist you further. Have a great day!

Thank you so much for your help! Verify did not find any issues with our data, nor did the rebuild option. I am also up to date with QuickBooks Desktop Pro Plus 2022. Any other ideas?

Hello there, @KC_Reiter. I know other solutions to help fix the error you've encountered while applying journal entries to a vendor bill in QuickBooks Desktop (QBDT). Let me guide you on how.

You're already on the right track in finding the cause of the error and doing a great job of keeping your QBDT software updated. When the Verify and Rebuild Data tools are unable to find any issues with your company data, you can use the QuickBooks File Doctor.

To repair your company file using QuickBooks File Doctor, kindly follow these steps:

1. Close QuickBooks.
2. Download the most recent version (1.5.0.0) of the QuickBooks Tool Hub (if you haven't already). 
3. Save the file somewhere you can easily find it (like your Downloads folder or your Windows desktop). Note: If you've installed Tool Hub before, you can find out which version you have. Select the Home tab. The version will be on the bottom.
4. Open the file you downloaded (QuickBooksToolHub.exe).
5. Follow the on-screen steps to install and agree to the terms and conditions.
6. When the install finishes, double-click the icon on your Windows desktop to open the tool hub.

Then, run the Quick Fix my File tool. Here's how:

1. From the tool hub, select Company File Issues.
2. Select Quick Fix my File.
3. Select OK when it completes and launch your QuickBooks.

If you still get an error message, continue with the troubleshooting steps starting with Step 3 in this article: Fix company file and network issues with QuickBooks File Doctor.

If the error persists after performing the steps above, I would encourage you to contact our Customer Care team. They can create a case to further investigate the cause of the error and get the issue fixed in no time. Here's how:

1. Go to Help, then select QuickBooks Desktop Help.
2. Select the Contact Us button.
3. Enter a brief description of your concern in the What can we help you with? field and click Continue.
4. Choose a way to connect (Chat or Callback).

Also, you may want to check  out one of our Help pages as your reference in case you need further assistance in entering expenses, paying bills, and managing vendors using QBDT: Expenses and vendors help for QuickBooks Desktop. 

We appreciate your patience regarding this matter. Please don't hesitate to comment below if you have other concerns and questions about managing vendor transactions in QBDT. I'm always around to help. Take care, and I wish you continued success, @KC_Reiter.

I had this issue too and was beyond frustrated. It turned out to be the simplest fix (which is usually the case in these situations). When you are on the "Pay Bills" screen, look below the "Set Credits" button, there is a "Payment" section. For me, the payment method in the drop-down list had somehow been changed to "Schedule Online Payment". Just change the method to "Check" and poof, I could apply my credit! This is one of four forums about this issue that I've been on today looking for a solution, and NONE of them was any help at all... I hope this helps everyone else! I am also going to post this on the other 3 forums as well. Please respond and let me know if it doesn't work for you. 

Excellent! thank you very much for that, I was finally able to apply the credit me too!

Welcome to the Community, @Diego71.

I am glad that the steps provided by my colleagues were able to help with adding a credit.

Please know that you are always welcome to post any QuickBooks-related questions you may have here in the Community.

Visit our Support page to learn more if you need assistance managing your QuickBooks Online account. It provides information to make your navigating experience more efficient.

Let me know if I can be of more help with vendor credit concerns. I'll be happy to assist you anytime. Have a great day.

Perfect! Thank you.

Once you are in Vendor Expenses (Expenses/Vendor)

   Click box on the open Invoice you want paid...  

    Hit the Action box where you see "schedule payment"....

     Click on "Show as paid"

All open invoices and the J/E credit appears...... apply appropriately.