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03789b
Level 2

Reconciling Vendor Credits

When I reconcile the bank in QBO, I have an issue reconciling payments to material vendors (all of whom are paid via electronic transfer on the vendor’s online portal).  When paying material vendor invoices due, I:

 

1.  Open (on vendor web site) the list of current invoices and credits and match their list with Bills in QBO for that month.  This is pretty straight forward, and it also allows me to know if I’ve missed posting a particular invoice/credit in QBO.

2.  Click-off (in QBO) all currently due invoices & credits by opening that vendor under the Expenses Tab and selecting “Schedule Payment” on the far right of one of the invoices due.  This brings up a list of all “unpaid” invoices & credits from that vendor – at which time I click off those ones I am paying (invoices & credits)

3.  I make sure that the total (in QBO) for the invoices and credits I am paying equals the total due on the vendor’s web portal.

4.  That done, I make the electronic payment on the vendor’s web portal.

5.  When I update the bank a day or two later, this transaction shows up and I need to reconcile it.  In doing so, I can either select “Categorize” using the “Split” function – in which case I have to designate (again) which invoices and credits I’ve paid.  Or I can “Find Match” in which case I can click off the Invoices that make up my total.  Herein lies the problem.  In both cases, the credits (usually for material returns etc…) do not show up and thus my final totals never match.

 

I suspect the problem lies in how we are entering these credits into QBO.  But that is just a guess at this time and if true, I still don’t know how to do it in a manner that will solve the above problem.

 

One more tidbit that may or may not have any bearing on this, we job cost every job and all material supplier invoices and credits are posted to the individual jobs.  This is done through a program called AutoEntry – a QBO certified application.

Solved
Best answer March 17, 2021

Best Answers
Rustler
Level 15

Reconciling Vendor Credits

Add step 3a.
Enter the payment in QBO, change the check number to EFT,save

later download and match

View solution in original post

3 Comments
Rustler
Level 15

Reconciling Vendor Credits

Add step 3a.
Enter the payment in QBO, change the check number to EFT,save

later download and match

View solution in original post

03789b
Level 2

Reconciling Vendor Credits

Rustler,

 

Your response is much appreciated.  I have been perplexed by this question for some time.  I am, in fact, the business owner and not an accountant or bookkeeper.  Your idea sounds logical and relatively simple.  However, I'm not sure at what point I am to enter this payment?

RenjolynC
QuickBooks Team

Reconciling Vendor Credits

Thank for the prompt reply, 03789b.

 

I'd like to know how you entered the credits into QuickBooks Online. In the meantime, if you can't match or categorize the transaction in the Banking page, you have the option to exclude them. Then, manually clear the bills and credits in your bank register.

 

To exclude, here's how:

 

  1. Go to Transactions > Banking > For review.
  2. Select the transactions you want to exclude.
  3. Click the Exclude button. The transactions will be moved to the Excluded tab.

 

Once done, you can follow these steps to clear the transactions:

 

  1. On the left panel, click Accounting > Chart of Accounts.
  2. Select the View register link of the account where your bills and credits are added.
  3. Under the Reconcile (indicated by a check mark) column, click the blank field until you see the letter C. This mean cleared and R stands for reconciled.
  4. Press Save.

Here's a sample screenshot for a visual reference:

 

 

After the steps, you can finally reconcile the account. This article includes the step by step process: Reconcile an account in QuickBooks Online.

 

Please let me know if you have questions about the process or add more details about your concern below. Stay safe.

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