Warranty claims - how to record customer and vendor

Hello there, @sabinefriesen.

When you return the faulty item to a vendor, you can create a vendor credit with the same amount cost of the item part. In this case, create a new bill for the vendor and apply the credit amount. I'll guide you how:

Step 1: Create a vendor credit

1. Go to the +New button, then select Vendor Credit.
2. In the Vendor drop-down arrow, select your vendor.
3. Enter the Category details or Item details.
4. Once done, select Save and close.

Step 2: Create a bill

1. Go to the +New button, then select Bill.
2. In the Vendor drop-down arrow, select your vendor.
3. Fill in the necessary fields.
4. Click Save and close.

Step 3: Apply the vendor credit and bill to expense

1. Go to the +New button, then select Expense.
2. In the Payee drop-down arrow, choose your vendor.
3. Under Add to Expense, add the Bill and Vendor Credit.
4. Click Save and close.

You can also visit this article to learn how to run a report with vendor totals: Run a report with vendor totals.

Feel free to drop a comment if you have additional questions. I'll be glad to assist you.

Thank you Maybelle, but that does not fix my problem!

I'm here to get through in entering your expenses, sabinefriesen. 

The expenses doubles is caused when you create another bill and bill payments every time there is a replacement. You'll have to only create another bill for the time spent to replace the part to our suppliers. From there, we can apply the supplier credit to the existing bill.

Let me show you how to link the credit to the bill:

1. Click the + New button.
2. Select Pay bills.
3. Select the bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
4. Complete the rest of the fields.
5. Click Save and close.

I also suggest reaching out to an accountant so they can help you manage in recording warranty claims that suits your business preference. 

Feel free to get back to me if you need anything else. You take care always!

@sabinefriesen 

I have no idea what you mean when you say that your expense account does not balance out right?

For the new part
1. charge the customer on an invoice for time and then issue the customer credit using your warranty expense account. When I do this I add a W- to the start of the invoice to make it easy to identify.
2. return the bad part to the vendor with the time totals and enter a credit at that time
3. the vendor will issue a credit, adjust that credit in QBO to match the vendor numbers and use other income as the account for the credit.

then when you order in the future, you use that credit to pay for your orders