Workaround to Set Credits on Bill while still using Quickbooks Bill Pay

Hi, benson777.  

To handle a credit memo in Bill Pay, consider creating a vendor credit and remember to switch the payment method from online payment to another option. I can guide you on how to set up a vendor credit.

Here's how to create a vendor credit:

1. Go to the Vendors menu located on the top bar of your company file and select Enter Bills.
2. Choose your supplier's name from the Vendor drop-down list.
3. Input the appropriate date in the Date field and fill out the remaining necessary fields.
4. In the Amount column, input an amount that is less than the full figure.
5. Then, Click Save.

You don't need to add a credit memo to the actual bill, once you created a vendor credit, you can use this towards any open or future bills.

Please refer to this article for instructions on how to record a vendor refund in QBDT: Record a vendor refund in QuickBooks Desktop.

Additionally, this article provides instructions on how to monitor the money you owe to your vendors: Accounts Payable workflows in QuickBooks Desktop. It includes a series of topics that explain how to handle each task within your company file.

Your dedication to managing your expenses is truly appreciated. If any questions arise or if there's anything else you'd like to discuss, please leave a comment below. I'm here and ready to assist you at any time, ensuring you have the necessary support to progress smoothly.

Hi, the whole point of my question was to ask for a workaround so that I can still use Bill Pay. I already have a credit memo created. But when I go to set credits, I am aware that I cannot use bill pay for partial payments. But is there a workaround where I can reduce the total bill cost (i.e. using expenses to apply the credit) so that I can still use Bill Pay? The whole point of my question is that I want to use bill pay and not switch payment options.

@benson777 

You should consider to replace QB Bill Pay to Melio. You can split a single bill into multiple payments and choose different payment methods for each one. Melio will automatically track your remaining balance after each partial payment. Make sure to subscribe to Melio Boost plan to sync with QB Desktop. You can also use it to accept B2B payments for free.

https://quickbooks.intuit.com/learn-support/global/manage-suppliers-and-expenses/pay-bills-online/01...

I understand the importance of using Bill Pay to streamline payments and reduce manual errors in QuickBooks, Benson. Allow me to provide further explanation below.

Please note that when you pay bills online, you cannot directly use credit. However, if you want to reduce the bill directly, create a specific item or account category for the vendor credit and add it as a line item with a negative amount. This approach will automatically adjust the unpaid balance reflected in the amount due.

I recommend consulting your accountant about this matter to ensure the new item or account is set up correctly, thus maintaining accurate financial records.

Additionally, please check out this article if you'd like to create rules to automatically categorize transactions for frequent expenses like supplies or business costs: Create rules to categorize transactions in QuickBooks Desktop.

As always, our Community Forum is eager to offer assistance if you have inquiries or concerns about managing your bills in QuickBooks Desktop. Please know that you can save this thread or click the Reply button below, and I'll be glad to lend a helping hand.

Thank you! I was looking for a workaround like this. This was the most direct answer to my question. 

Thank you! I was looking for a workaround like this. This was the most direct answer to my question. 

Glad it helped!