I have just the steps you'll need to apply a credit in a Purchase Order. In QuickBooks Online, Purchase Orders must be reviewed and converted to a Bill before a payment can be applied. Once you've done this, a Vendor Credit can be created and applied to the Bill. Check out the steps below to get started:
Convert a Purchase Order
From QuickBooks Online, navigate to the Expenses tab > Expenses section.
Find the Purchase Order on the list and click to open it. Use the Filter menu to narrow the results if needed.
In the top-right corner, select Copy to Bill. Fill out the necessary details and click Save and close once finished.
With these instructions, you'll be able to apply that credit to your purchase order like an expert. Please get in touch with me here should you need any further assistance, the Community always has your back. Thanks for reaching out and take care.
You're on the right track. Make sure that the amounts on the purchase order and the bill are the same. Then, make a payment of $1,417.82. Once done, a vendor credit should be automatically created which you can apply on your next purchase.
Here's how to edit and pay the bill:
Open the bill.
Update the amount to 1354.07.
Click Make Payment.
Enter 1417.82 in the Amount box.
Click Save and close (see the first screenshot).
You'll then see a Credit of 63.75 at the bottom part of the Bill Payment screen.
To apply the credit, you'll have to convert the purchase order to a bill. Once you make a payment, the credit will show at the bottom (see the second screenshot).
You can refer to the article about vendor credit and refunds provided by my peer MichaelDL above.
That's it. If you have follow-up questions, feel free to let me know. I'll be here and ready to help anytime. Have a great day.