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Frequent Explorer **

How do I apply a credit to a vendor bill after it's been paid?

I recently paid a leasing company a doc fee and sales tax.  A few months later they issued me through an ACH a credit that was most of the sales tax amount.   How do I apply that credit? 

Then for one of my monthly ACH lease payments, they gave me credit for the doc fee and only took out the difference.   How do I make that adjustment?     

I need this explained to me in terms that a fifth grader ( and not a smart one) could understand.  Some of the high tech terminology used gets me lost.   Thanks for your help.

Solved
Best answer 06-19-2019

Accepted Solutions
QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Hello dbackpro,

 

Thank you getting back to us here in the Community. I'm here to assist you with paying the bills part in QuickBooks Desktop.

 

You can review the deposit from your Chart of Accounts and ensure you select Accounts Payable as the account.

 

Here's how:

 

  1. Click the Lists tab at the top menu bar.
  2. Click Chart of Accounts.
  3. Double-click the bank.
  4. Search for the deposit.
  5. Double-click to open the deposit.
  6. Below the From Account column, make sure to select Accounts Payable.
  7. Click Save & Close.

Please see screenshot for your visual guidance:

 

For additional insights into Accounts Payable, I'm attaching the article on this:

 

Accounts Payable workflows in QuickBooks Desktop.

 

Please reach out to me if you seek further assistance with the process. The Community is eyeing out on your response.

View solution in original post

QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Thank you for getting back to us, @dbackpro.

 

It'll be my pleasure to help you record the vendor credit and apply it to your bills.

 

When receiving a rebate credit from a manufacturer, you can record a credit which you can apply to current or future bills.

 

You can follow these steps in recording the credit:

  1. Click on Vendors from the menu bar.
  2. Select Enter Bills.
  3. Click on the Credit button.
  4. Choose the manufacturer name from the Vendor section.
  5. Enter the necessary information for the credit.
  6. Click on Save & Close.

 

Then, you can follow these steps to apply the credit to your bills:

  1. Open the outstanding bill.
  2. Click on Pay Bill.
  3. From the Pay Bills window, select the bill.
  4. Click on Set Credits.
  5. Select the credit from the Discount and Credits window.
  6. Click on Done.
  7. Click on Pay Selected Bills.

I've attached some screenshots below for your visual reference.

 

 

 

You can visit our Help Articles in your free time if you want to learn more "How do I" steps in QuickBooks.

 

Don't hesitate to tag me in your comment if you have any other questions and concerns. I'll be sure to get back to you.

View solution in original post

QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Let’s get the rebate credit item set up, @dbackpro.


Since this is a repayment, select Income as the posting account. Let me show you how:

  1. On your Credit screen, click the drop-down of the first line Item column.
  2. Click <Add New>.
  3. Select the item Type.
  4. Enter Item Name/Number.
  5. Choose an Income account on the Account drop-down.
  6. Hit OK.

add item 1.PNG Add item 2.PNG

 

Once done, you can follow the steps shared by my colleague Alessandra_B to record the credit and apply it to vendor bills.


For more information, check out this article: Add, edit, and delete items


That should answer your concern for today.


Keep me updated on how this goes. I’m always here to help if you need further assistance. Have a good one!
 

View solution in original post

11 Comments
QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Hello there, dbackpro.

 

I'm glad you reached out to us regarding your concern about applying credit to a paid vendor bill in QuickBooks Desktop.

 

We can't apply a credit to a paid vendor bill. Instead, you can enter a bill credit and deposit the refund using the Accounts Payable. Once done, you can then use the Pay Bills feature to link your deposits.

 

I'd be happy to walk you through the whole steps below:

  1. Go to Banking menu.
  2. Choose Make Deposits.
  3. If the Payments to Deposit window appears, click OK.
  4. In the Make Deposits window, click the Received from drop-down.
  5. Choose the vendor who sent you the refund.
  6. In the From Account drop-down,  select the appropriate Accounts Payable account.
  7. Enter the amount of the reimbursement in the Amount column.
  8. Click Save & Close.

The, you record a Bill Credit for the refunded amount:

  1. From the Vendors menu, select Enter Bills.
  2. Select the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Click the Expenses Tab and enter the Accounts on the original Bill.
  5. In the Amount column, enter the appropriate amount for each Account (the amounts may have to be prorated).
  6. Click Save and Close.

Once done, you can link the deposit and the credit using the Pay Bills feature. 

Here's how:

  1. Go to the Vendors menu.
  2. Select Pay Bills.
  3. Check the Deposit that matches the Vendor check amount.
  4. Select Set Credits and apply the Bill Credit you created.
  5. Click Done.
  6. Click Pay Selected Bills.
  7. Click Done.

Just in case you need reference in recording bills and bank deposits, let me provide you with these articles:

There you have it. This will point you in the right direction. If you need more guidance with the whole process , just let me know. I'd be more than happy to help.

Frequent Explorer **

Re: How do I apply a credit to a vendor bill after it's been paid?

Thank you Charles_M

 I did all the steps but I can't find the deposit under the pay bills in the 3rd group.  Any suggestions?

Thanks 

 

QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Hello dbackpro,

 

Thank you getting back to us here in the Community. I'm here to assist you with paying the bills part in QuickBooks Desktop.

 

You can review the deposit from your Chart of Accounts and ensure you select Accounts Payable as the account.

 

Here's how:

 

  1. Click the Lists tab at the top menu bar.
  2. Click Chart of Accounts.
  3. Double-click the bank.
  4. Search for the deposit.
  5. Double-click to open the deposit.
  6. Below the From Account column, make sure to select Accounts Payable.
  7. Click Save & Close.

Please see screenshot for your visual guidance:

 

For additional insights into Accounts Payable, I'm attaching the article on this:

 

Accounts Payable workflows in QuickBooks Desktop.

 

Please reach out to me if you seek further assistance with the process. The Community is eyeing out on your response.

View solution in original post

Highlighted
Frequent Explorer **

Re: How do I apply a credit to a vendor bill after it's been paid?

That was the missing piece to solve the puzzle!!!  Thanks

QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Hello again, dbackpro.

 

Let me start by saying how much I appreciate you for getting back to us here in the Community. I'm glad to know that I was able to provide the missing information to succeed with paying bills.

 

For future reference, I'm adding the article I found helpful about paying bills:

 

Pay bills in QuickBooks Desktop.

 

As always, please don't hesitate to reach out to me with regards to any question about using QuickBooks. Wishing you all the best.

Frequent Explorer **

Re: How do I apply a credit to a vendor bill after it's been paid?

That went extremely well.    Now if you can please explain to me how to handle this credit.

 

I was issued a rebate credit from a manufacturer that we lease equipment from.  Since there wasn't any cash exchanged during the process..  how do I 

1 enter the rebate credit

2  apply the rebate credit to the outstanding invoices.

 

Thanks 

QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Thank you for getting back to us, @dbackpro.

 

It'll be my pleasure to help you record the vendor credit and apply it to your bills.

 

When receiving a rebate credit from a manufacturer, you can record a credit which you can apply to current or future bills.

 

You can follow these steps in recording the credit:

  1. Click on Vendors from the menu bar.
  2. Select Enter Bills.
  3. Click on the Credit button.
  4. Choose the manufacturer name from the Vendor section.
  5. Enter the necessary information for the credit.
  6. Click on Save & Close.

 

Then, you can follow these steps to apply the credit to your bills:

  1. Open the outstanding bill.
  2. Click on Pay Bill.
  3. From the Pay Bills window, select the bill.
  4. Click on Set Credits.
  5. Select the credit from the Discount and Credits window.
  6. Click on Done.
  7. Click on Pay Selected Bills.

I've attached some screenshots below for your visual reference.

 

 

 

You can visit our Help Articles in your free time if you want to learn more "How do I" steps in QuickBooks.

 

Don't hesitate to tag me in your comment if you have any other questions and concerns. I'll be sure to get back to you.

View solution in original post

Frequent Explorer **

Re: How do I apply a credit to a vendor bill after it's been paid?

Alessandra_B   Thank you for your help,  Another question.   When I am doing the credit I click on the items tab instead of expenses ( like shown in the screen shot)  I dont have anything like the sample rebate credit shown under item.  If I add a new then it lists about 5 different items to choose from.  What type of account would this be in the add drop down would I use

 

Thsnks

dbackpro.

QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

Let’s get the rebate credit item set up, @dbackpro.


Since this is a repayment, select Income as the posting account. Let me show you how:

  1. On your Credit screen, click the drop-down of the first line Item column.
  2. Click <Add New>.
  3. Select the item Type.
  4. Enter Item Name/Number.
  5. Choose an Income account on the Account drop-down.
  6. Hit OK.

add item 1.PNG Add item 2.PNG

 

Once done, you can follow the steps shared by my colleague Alessandra_B to record the credit and apply it to vendor bills.


For more information, check out this article: Add, edit, and delete items


That should answer your concern for today.


Keep me updated on how this goes. I’m always here to help if you need further assistance. Have a good one!
 

View solution in original post

Frequent Explorer **

Re: How do I apply a credit to a vendor bill after it's been paid?

Thanks

That was the next question that I had typed out was waiting to be sent out.  

 

Thanks

QuickBooks Team

Re: How do I apply a credit to a vendor bill after it's been paid?

You’re welcome, @dbackpro.


I’m glad I was able to help you with creating the rebate credit item.


If you need anything else, please let me know. I'm always here to keep helping. Take care!

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