Applying Credits against Vendor Bills

Sabrah · ‎November 02, 2021

Is there a way to apply a bulk credit against a check paying multiple invoices without having to specifically apply the credit to invoices. We get credits on a vendor account that are not credits against specific invoices. I may be paying 30 invoices totaling $10,000 and have a credit on account of $3,000. Do I have to open each individual invoices for 50.00, 100.00, etc. to apply the credit piecemeal until it is fully applied.

Thanks.

ShiellaGraceA · ‎November 02, 2021

I'll be glad to assist you with applying credits, @Sabrah.

You'll want to record the credit in QuickBooks and then automatically apply the credit to your open bills. Let me guide you how.

To turn on auto-credit:

Go to Edit at the top.
Choose Preferences.
Select the Bills menu from the left and then the Company Preferences tab.
Mark the box next to Automatically use credits.
Click OK. See the image below.

Next, create credit by going to:

Vendors menu at the top.
Choose Enter Bills.
From the Bills page, tick the Credit radio button.
Enter other credit details.
Click Save & Close.

After creating credit, QuickBooks will automatically apply the credit to the open vendor bills.

I'm adding this link to guide you with vendor-related workflows: Accounts Payable workflows in QuickBooks Desktop.

Reach out to me again if you still have questions or concerns with vendor credits. I'm more than happy to assist you. Have a wonderful day ahead.

View solution in original post

ShiellaGraceA · ‎November 02, 2021

I'll be glad to assist you with applying credits, @Sabrah.

You'll want to record the credit in QuickBooks and then automatically apply the credit to your open bills. Let me guide you how.

To turn on auto-credit:

Go to Edit at the top.
Choose Preferences.
Select the Bills menu from the left and then the Company Preferences tab.
Mark the box next to Automatically use credits.
Click OK. See the image below.

Next, create credit by going to:

Vendors menu at the top.
Choose Enter Bills.
From the Bills page, tick the Credit radio button.
Enter other credit details.
Click Save & Close.

After creating credit, QuickBooks will automatically apply the credit to the open vendor bills.

I'm adding this link to guide you with vendor-related workflows: Accounts Payable workflows in QuickBooks Desktop.

Reach out to me again if you still have questions or concerns with vendor credits. I'm more than happy to assist you. Have a wonderful day ahead.

alisongsla · ‎July 31, 2025

I don't believe that answers the question.

Dandie_A · ‎July 31, 2025

I understand how this situation can be a bit confusing, Alisongla. Let me clarify and provide further details to make sure the solution provided earlier is the best approach for handling this workflow in QuickBooks Desktop (QBDT).

Before we begin, can you confirm that you are referring to applying a bulk vendor credit to multiple open invoices?

If this is the case, the steps shared by my colleague are the best way to apply a bulk credit to multiple invoices. To streamline the process, enable the Automatically apply credits checkbox in QuickBooks settings. This feature will allow QuickBooks to automatically apply available credits to open bills whenever you perform this action. This saves you the step of manually applying credits to individual invoices.

If you don’t yet have the vendor credit entered in QuickBooks, you’ll need to create the credit first before turning on auto-credit and applying it to your bills. Once the credit is entered, you can proceed with your bulk payment workflow as described above.

If you have any further questions, feel free to return to this thread.

SIAB · ‎July 31, 2025

@alisongsla

Any specific concerns?

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Applying Credits against Vendor Bills