Taking a credit on a scheduled payment

I appreciate you for sharing detailed information about your concern, @buuzbee. Let me clarify a few points to help you apply the vendor credit to your bills accurately.

Before anything else, please note that we can't use discounts or credits when scheduling online payments with QuickBooks Bill Pay. To get around your situation, you can create a vendor credit and apply it to your bill to reduce its balance.

Let me walk you through the steps how:

Step 1: Make a vendor credit

1. Select + New and click the Vendor Credit.
2. Choose the vendor in the Vendor dropdown.
3. Enter Category details or Item details based on your usual recording for this vendor, typically involving the product or service being credited.
4. Click Save and close.

Then, apply the vendor credit to the bill. Remember, this doesn't pay the bill but only connects the transactions. Here's how:

Step 2: Applying the vendor credit

1. Select + New and click Pay Bills.
2. Select a bill for your vendor from the list. The available credit with this vendor is shown in the Credit Applied field.
3. Click Save and close.

Once done, you can now pay the remaining balance by scheduling an online payment with QuickBooks Bill Pay.
 

For more information, you can refer to the following articles:

• Enter vendor credits and refunds in QuickBooks Online
• Learn about QuickBooks Bill Pay for QuickBooks Online
  
  

You can always check out this article to get an overview for smooth tracking of your business expenses: Run a report with vendor totals in QuickBooks Online.

Should you have any questions regarding vendor credits, bill pay, or other QuickBooks-related issues, please leave a reply below. The Community is always available to assist you 24/7.

Thank you for the reply... that's what I've been doing.  It's confusing to the vendors; short paying an invoice especially when it's for a discount.

Any clue why when I pay a bill that has the terms of say 2%, that the discount doesn't show up?  I have to do a vendor credit.

Hi buuzbee,

I'll be providing you a workaround since QuickBooks Online (QBO) doesn't have a discount feature when paying bills.

Here's how to create a discount account:

1. Click the Gear icon and select Chart of accounts.
2. Select New.
3. Enter an Account name.
4. Choose an Account type, and then the Detail type from the drop-down list.
5. Enter any necessary information and click Save.

Once done, proceed with these instructions to apply a discount account towards your bill.

1. Go to +New and click Bill.
2. Fill the necessary information.
3. Click Category in Category details, then choose the discount account.
4. Choose the desired discount amount. Put a negative sign before the number.
5. Select Item details.
6. Choose a Product/Services.

From there, you will see that the total is deducted based on the discount amount you enter. This workaround allows you to apply a discount to your bill, which will reduce the balance due.

Check out this article if you want to pay your bills online: Learn about QuickBooks Bill Pay for QuickBooks Online

Don't hesitate to reach the QuickBooks Community again for further assistance with bill payment or any questions about your QuickBooks.