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Level 1

Vendor debit memo

How do I create a debit memo for a vendor?

QuickBooks Team

Vendor debit memo

Hi there, @kenb.

Thanks for visiting the Community. I'm able to walk you through the steps in creating a vendor credit in QuickBooks Desktop.

When you need to refund a vendor for a returned product or services, creating a debit memo (vendor credit) is an option. You can use this to make a payment to open purchases in QuickBooks.

Here’s how to create a vendor credit:

  1. Go to the Vendors menu and select Enter Bills.
  2. Choose the Credit button instead of Bill.
  3. Select the Vendor name.
  4. Click the Expenses tab and enter the Accounts on the original Bill.
  5. Enter the amount in the Amount column.
  6. Hit Save and Close.


For more information, check out this article: Record a vendor refund in QuickBooks Desktop.

That should get you pointed in the right direction. Post again in the Community if you need additional assistance, I’m always here to help. Take care and have a good one! 

Level 1

Vendor debit memo

Then how do I print a debit memo to send to the vendor?


Vendor debit memo

Good day, kenb,


Please follow these steps below to print the vendor credit you created:

  1. Go to Vendors Center.
  2. Select the vendor.
  3. Under Transactions tab, locate the credit and click on it.
  4. Click the Print icon on the new window.

Have a great week! Let me know if you need anything else.

Level 1

Vendor debit memo

How do you remove the credit if this is related to equipment that will be replaced and an actual credit will not be given by the vendor?  

QuickBooks Team

Vendor debit memo

Hi there, @flynch.


Removing vendor credit in QuickBooks Desktop (QBDT) is just a few clicks. I'm happy to walk you through the steps to accomplish this. 


You can remove the vendor credit by going to the vendor's transaction list in your account. Please follow the steps below depending on your scenario.


Remove a credit from an invoice, here's how: 


  1. Press Ctrl + H on your QBDT homepage to display History. 
  2. Double-click the invoice and select Apply Credits.
  3. On the Previously Applied Credits window, clear the selection for credit.
  4. Tap Done in the Apply Credits window. 
  5. Hit Save and Close in the invoice. 


Here's how for bill: 


  1. Go to the Vendor on the top menu, then choose Vendor Center
  2. Click the name and locate the bill. 
  3. Select the Bill radio button to change the transaction type to the bill instead of the credit. 
  4. Tap Save & Close.


For extra information, visit this article: Remove or apply credit from an invoice or bill


Additionally, you can always access the Transaction Detail report to review the unapplied or remaining credit of your clients. Let me show you how: 


  1. Go to Reports, select Custom Reports, then Transaction Detail.
  2. On the Display tab, add the Open Balance column, then remove other columns when necessary.
  3. On the Filter tab select Accounts ReceivableAccounts Payable, specific NameTransaction Type, and Paid status
  4. Hit OK



For more details about customizing reports, check out this link: Customize reports.


I've also shared this article about handling vendor information, transactions, reports, and other similar matters: Expenses and vendors.


Should you need anything else, please let me know in the comment section. I'm here to give answers and resolutions. Keep safe always. 

Level 2

Vendor debit memo

I have an inventory vendor credit memo.  I want to reduce my inventory value, and don't want to create a negative expense.  I don't want to force an entry in the inventory asset G/L, that will throw off my subledger.


Vendor debit memo

I'm here to help you reduce your inventory value, HidowDoug.


You can use the inventory value adjustment feature in QuickBooks Desktop to reduce your items.


However, before doing so, I'd suggest working with your accountant. They'll be able to help you on how to record an entry without throwing off your sub-ledger.


As an initial step, you'll need to create an account to track your adjustments. Here's how:


  1. Click Company at the top menu bar and choose Chart of Accounts.
  2. Select the Account ▼ drop-down and click New.
  3. From the Other Account Types ▼ drop-down, select Cost of Goods Sold.
  4. Name this account “Inventory Adjustments”, and then Save and Close.


Once done, you can proceed in adjusting your item's value:


  1. Click Vendors and then Inventory Activities. Then, select Adjust Quantity/Value on Hand.
  2. Tap Inventory and then select Adjust Quantity/Value on Hand.
  3. Choose between Quantity, Total Value, or Quantity and Total Value. Select the adjustment type option and then select your adjustment account.
  4. Enter the Adjustment Date.
  5. From the Adjust Account ▼ drop-down, select the adjustment account you set up.
  6. Add a Reference No. You can also assign a customer, job, or class.
  7. Find & Select Items. Select the items you want to adjust. If you have a lot, search for any product in the Find field.
  8. Add Selected items and enter a new quantity or new value (or both) for each item.
  9. Hit Save and Close.


You can get more details about this in this article: Adjust your inventory quantity or value in QuickBooks Desktop. This will give you more tips about adjusting your stock of finished goods as well as steps in pulling up a report to check your inventory status.


Also, you might find this article interesting: Fix negative inventory issues in QuickBooks Desktop. You'll find steps on how to review negative stocks and tips to prevent them.


Feel free to get back to me if you have any questions or need further assistance with anything in QuickBooks. I'll be right here to assist you anytime. Have a nice day!

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