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JM09
Level 1

Vendor Credit

I have a credit balance on a vendor account. The credit was caused when the vendor issued a credit memo for an overpayment. The vendor has since issued a refund check for the overpayment. I deposited the check to the vendor's name but the credit balance remains. How do I clear the credit balance?

9 Comments 9
IamjuViel
QuickBooks Team

Vendor Credit

You're already on the right track, @JM09.


Let me help walk you through clear out your vendor balance.

 

First, let's record the refund amount. Here's how:

  1. Click Banking.
  2. Choose Make Deposits.
  3. Select the specific Deposit To bank account where the funds were initially posted.
  4. Enter the name of the vendor in the Received From column.
  5. Choose Accounts Payable as the account affected.
  6. lick Save and Close.   

Once recorded, let's apply the credit, here's how:

  1. Go to Vendors.
  2. Choose Vendor Center.
  3. Click New Transaction drop-down.
  4. Select Pay Bills.  
  5. In the Pay Bills window, select Show all bills.
  6. Choose the specific AP account.
  7. Put a check mark on the deposit you've recorded.
  8. Click Set Credits.  
    1. In the Discount and Credits window, choose Credit tab.
    2. Put a check mark on the credit that you've created.
    3. Click Done.
  9. Hit Pay Selected Bills.undefined

That should do it! You can now see a zero balance in your Open Balance Report.

 

If you're still unable to apply credit to your vendor, I'd recommend contacting our Customer Care Team. An agent will be able to further assist you via secured remote access session.

 

Here's how to contact us:

  1. Visit: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose your QuickBooks Product.
  3. Select your QuickBooks Version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

Always feel free visit us here in the Community if you have other questions about applying credit to your vendor payments. I’m always here to help.

Wulin
Level 1

Vendor Credit

juVielL

I followed all these directions and after looking at your visuals I have determined that my first problem is I that can not choose an AP account on the Pay Bills screen.  The pull down in your second visual labeled #2 does not exist on my screen.  I have determined that my deposit AP account matches the Vendor Credit AP Account.  But I cannot link them.  Now what?

IamjuViel
QuickBooks Team

Vendor Credit

Glad to hear again from you, @Wulin.

 

Let me share additional information on you can apply vendor credit to the correct account in the Chart of Accounts.

 

You have to make sure to select the Accounts Payable on the upper part of the pay bills window.

 

 

If you're still unable to see the specific account on your end, is it possible to ask for a screenshot of what you're seeing on your end? This would be very helpful so I can give you the accurate resolution.

 

Please feel free to click the Reply button if you have follow-up questions about applying vendor credit in QuickBooks Desktop. I’m always here to help.

SMP2
Level 1

Vendor Credit

I googled the info to link a vendor refund check to the deposit. There is no AP box in my Pay Bills window. I have gone through the directions numerous times, but there is no way to link the deposit made to banking with the bill credit. Very confusing. Hope someone can help. Thanks.

JamesDuanT
Moderator

Vendor Credit

Hello SMP2,

 

The A/P Account field in the Pay Bills window will only appear if you have two or more active Accounts Payable account. You can review this in the Chart of Account page (Ctrl + A). If you're using a single A/P account, you can ignore the screenshot provided on the earlier response.

 

Going back on how to record the vendor refund, this is the flow that we are following:

  1. Create the vendor credit.
  2. Create the bank deposit.
  3. Link the vendor credit and the bank deposit.

Here are the detailed instructions for Steps 1-3:

Create the Vendor Credit

  1. Click Vendors at the top menu and select Enter Bills.
  2. In the Enter Bills window, select the Credit radio button.
  3. Enter the refund details and click Save & Close.

Create the Bank Deposit

  1. Click Banking at the top menu and select Make Deposits.
  2. Enter the details of the deposit (Deposit To, Date, and Memo).
  3. Select the vendor name in the RECEIVED FROM column.
  4. Select the Accounts Payable in the FROM ACCOUNT column.
  5. Enter the refund in the AMOUNT column.
  6. Click Save & Close.
    Note: This will show as  amount due in the Pay Bills window.

Link the two transactions (vendor credit and bank deposit)

  1. Click Vendors at the top menu and select Pay Bills.
  2. In the Pay Bills window, mark the amount due (bank deposit) we created earlier.
  3. Mark the Set Credit button. This will open the Apply Credits window.
  4. Go to the Credits tab and mark the available credit.
  5. Select Done.
  6. Ensure that the AMT. TO PAY column is zero (0.00).
  7. Enter other necessary details and click Pay Selected Bills.

Please get back to me if you require additional assistance in doing any of the steps above.

rpscissors
Level 1

Vendor Credit

Hi James,

I am having the same issue. I can do steps 1 and 2 no problem. But when I got to Pay Bills there is no set credit button.  I have the Mac Desktop 2019 version, so perhaps this is the issue. But how else can I link the deposit to the credit and zero out the credit? Currently the credit is showing as an open balance and a negative in my AP. I only have one AP account.

Screen shot attached of what I see when I click pay bills. I want to link all of the credits listed in that window, but let's take History San Jose as an example. When I click ok on the pay bills window, it takes me to the write check window you see in the screen shot. When I click ok to print the check (which I don't actually want to do, as it was a refund check to ME), nothing happens. You can see the open credit for History San Jose in the screenshot.

Can you help??

Thanks!

 

ReymondO
QuickBooks Team

Vendor Credit

Let me help you clear your account payable using your vendor credits, @pscissors.

 

t looks like a similar question was posed in a different thread. I also checked both screenshots you've shared when paying the bill. 

 

For us view the Set Credits option, let's make sure that the Vendor Credit wasn't applied to any existing bills. This way, we can make sure that this option will show when you to pay bills.

 

If you can't still see it, I recommend reaching out to our customer specialist. This way, they can check your account to further isolate the issue. Here's how:

 

  1. Go to this link: https://help.quickbooks.intuit.com/en_US/contact.
  2. Select QuickBooks Mac Desktop.
  3. Select the Account Management $ Orders option, then select a sub-topic.
  4. Click Get Phone Number.

 

If you have any other questions please let me know. I'm always glad to help any way I can.

rpscissors
Level 1

Vendor Credit

Thanks Reymond. I don't ever input bills into Quickbooks, so I am fairly sure that it is not applied to any existing bills. But how could I check that?

 

Are you familiar specifically with the Mac version of the Desktop software? I am wondering if the Mac version just has a different work flow than the PC version? I am using the Mac version.

 

Thank you for your help.

IamjuViel
QuickBooks Team

Vendor Credit

Yes, you can enter a bill credit in QuickBooks Mac, @rpscissors.

 

Also, you can run and customized the Transaction Detail report. This will allow you to verify transactions that were applied or linked together.

 

Here's how:

  1. Go to the Reports menu.
  2. Choose the Custom Transaction Detail Report.
  3. From the Dates pop-up menu, choose the Custom Dates: 
    • From: the earliest QuickBooks date (or leave blank)
    • To: the date of last reconciled statement
  4. Click Filters and set the following:
    • Account: the account you’re reconciling
    • Transaction Type: Bill, Vendor Credit, Bill Payments
    • Entered/Last Modified
    • Date From: date of your last successful reconciliation
    • Date To: today
  5. Click Apply.

On the other hand, you'll have to enter a bill so you'll be able to apply the vendor credit or bill credit.

 

Here's how:

  1. Choose Vendors.
  2. Enter Bills.
  3. Select Credit at the top of the window.

Then, you can apply the credit when you pay a future bill from the vendor. You can refer to this article for more detailed steps: QuickBooks Desktop for Mac 2019 User's Guide (Go to page 141).

 

Let me know if you have other questions. I'm always here to help.

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