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Join nowHi there, ks-man.
We may not use Accounts Receivable when handling credit from your vendor. Instead, you’ll want to record a Vendor Credit so you can apply it to your future purchases.
Here’s how:
The unapplied credit will show the moment you’ll pay your future bills.
After doing the process (Purchases Order> Bill > Pay Bills > Vendor Credit), you may not use Journal Entries anymore. Also, the Vendor Credit will reduce the Quantity on hand of your items.
Check out the Inventory Valuation Detail report to see an overview of your item's Quantity on Hand.
Reach out to me if you need more help.
Hello there, @ks-man.
Let me share some clarification about vendor credit. When recording a vendor credit in QuickBooks, it's posted to AP account not in AR. The receivables shows money due to you from buyers, and payables indicates what you owe to creditors.
To track vendor credit in QuickBooks and apply it for future purchase, it's recommended to record the order in QuickBooks. You have three options: bills, expense or write checks.
If you want to apply a vendor credit toward any open or future bill, it's fine not to create a purchase order.
Here's how:
Then, apply vendor credits to a bill. Here’s how to do it:
If you choose expenses or checks, you can enter a note to remind yourself about this credit in the future. But if you still prefer to use an asset account to record the credit, I recommend you consult an accountant to ensure your books are recorded correctly. Or, we can help you find an accountant.
Connect with us again if you have other questions about QuickBooks. Have a great day ahead.