Clear AP Vendor Credit with No Invoice prior year

Thank you for posting here on the community page, SBennett530. 

I'd be glad to share with you some information about clearing AP Vendor Credit with no Invoice prior year in QuickBooks Desktop. 

We don't recommend deleting any vendor's credits, especially if they've been on the books for a long time. Deleting Vendor credit will affect multiple previous periods and maybe put you in a lot of trouble by throwing your Trial Balance off. 

Keep in mind that deleting the vendor credit not only deletes the transaction from the A/P ledger but also deletes the General Lodger expenditure account and any tax amounts that were used.

I'd suggest consulting an accountant to avoid messing up your books and to check if there are no tax implications. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.

Let me add the reference about Accounts Payable workflows in QuickBooks Desktop to better guide you.

I'm only a few clicks away if you need assistance with your other QuickBooks tasks. It's always my pleasure to help you out again.

Let me help clear out the vendor credit, SBennett530.

You can enter a bank deposit to zero out the credit. It'll also affect the Vendor's accounts since you'll deposit it to the Accounts Payable. 

Here's how to create a deposit to zero out your credit. 

1. Go to Banking and select Make Deposit.
2. Click the bank account you wanted to deposit to in the Deposit To drop-down.
3. Select the vendor in RECEIVED FROM drop-down.
4. Choose Accounts Payable in the FROM ACCOUNT drop-down.

Then, use the Pay bills function to link the deposit to the vendor credit. From the Pay Bills window, you'll see the available credits from the Total Credits Available section. Simply click the Set Credits button to link them.

Further, read through these articles below to learn more on how to reconcile an account and manage vendor transactions: 

• Expenses and vendors
• Reconcile an account in QuickBooks Desktop.

Keep me posted if there's anything else I can help you with clearing the vendor's credit. I'm always right here to provide the information that you need.