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Level 1

How do I apply a credit to a vendor bill after it's been paid?

I received a bill from a vendor and paid it from our business checking account.  Later, the vendor determined that they over charged us and sent us a refund check for apportion of the bill.  How do I apply this credit against a bill that has already been paid and deposited?  Thanks for your help!

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Best answer 12-10-2018

Best Answers
Level 15

"I think we should be able to deposit a refund check from...

"I think we should be able to deposit a refund check from the Vendor and wipe out the bill all at the same time."

It Offsets the bill. They are separate transactions on different dates. You don't Wipe Out something that happened, for real.

View solution in original post

10 Comments
Level 15

"I think we should be able to deposit a refund check from...

"I think we should be able to deposit a refund check from the Vendor and wipe out the bill all at the same time."

It Offsets the bill. They are separate transactions on different dates. You don't Wipe Out something that happened, for real.

View solution in original post

Anonymous
Not applicable

A completely paid bill can't have anything else applied t...

A completely paid bill can't have anything else applied to it.  Instead enter a bill credit and deposit the refund, using the AP account on the deposit.  Then use Pay Bills to link the two together.


Level 1

Thank you, very helpful!

Thank you, very helpful!
Level 2

This creates extra work - I think we should be able to de...

This creates extra work - I think we should be able to deposit a refund check from the Vendor and wipe out the bill all at the same time. That is not an option right now - pass this on to techs. Thanks
Anonymous
Not applicable

It will never work to apply a refund from a vendor to a b...

It will never work to apply a refund from a vendor to a bill:
- A refund from a vendor means you now owe them more money than you did before.
- A refund is opposite of making a payment to the vendor.  Payments made pay down bills and AP.  Payments received from Vendors increase the AP balance just bill bills do, and function as bills, increasing the balance and giving you something to pay, or something to apply a bill credit to (probably the bill credit you created to match the refund check.)
Level 1

Re: A completely paid bill can't have anything else applied t...

Our company has paid a vendor's bill in full.  A tenant has reimbursed us for a portion of it, as agreed.  Where to I put the tenant's reimbursement?

QuickBooks Team

Re: A completely paid bill can't have anything else applied t...

Hello there, @judy2learn.

 

I want to make sure you’re able to record the refund you’ve received from your vendors in QuickBooks Desktop. Let’s get started!

 

Since you’ve fully paid the bill, you’ll only need to record the reimbursement made by your tenants as Deposit. Just make sure to select the same Accounts Payable account from the chart of accounts that you use in paying the bill. 

 

Here’s how:

  1. Go to Banking menu.
  2. Choose Make Deposits.
  3. If the Payments to Deposit window appears, click OK.
  4. In the Make Deposits window, click the Received from drop-down.
  5. Choose the vendor who sent you the refund.
  6. In the From Account drop-down,  select the appropriate Accounts Payable account.
  7. Enter the amount of the reimbursement in the Amount column.
  8. Click Save & Close.

That should do it! Feel free to click the Reply button if you have other questions about recording your reimbursements. I’m always here to help.

Level 1

Re: How do I apply a credit to a vendor bill after it's been paid?

usually  the vendor should send you a credit memo, you should enter it, and when you record the dep assign the AP account and by name assign the vendors name then in pay bills it will give you the option to apply the CM to the payment like if it was a bill so it will balance out

Level 1

Re: A completely paid bill can't have anything else applied t...

Thanks for the information.  Our tenant included the reimbursement in their rent check for January, which has been deposited at the bank.  When I received that check on 1/4/19, I "split" it, posting rent to the appropriate acct but depositing the entire check.  The balance that they are paying towards the vendor's work is kind of sitting in limbo.  Because the entire check has been deposited, is it okay for me to use your method to record this pmt?  The check register shows the full check amount.

QuickBooks Team

Re: A completely paid bill can't have anything else applied t...

Greetings, judy2learn.

 

I'd like to add to this discussion and provide additional insight regarding this matter.

 

As my colleague mentioned, you can record the reimbursement received from your tenant as a deposit. Although, in this scenario, you'll want to reflect this in the Expense account used on the vendor's bill instead.

 

With this, you won't have a balance for the vendor sitting in limbo. In fact, the bill should already be paid in full.

 

Overall, I would recommend that you follow the exact steps that you did when you paid the bill and received the reimbursement from the tenant. Also, I can see that you already have a grasp on how to record this, but just in case, let me provide you with these helpful articles:

Please be sure to reach out to an accounting consultant to ensure this method is the best suit for your business. With Intuit's Find-A-ProAdvisor site, you can search for certified professionals in proximity to your ZIP code that can discuss options more personal to your business's needs.

 

Please don't hesitate to reach out to me again if there's anything else I can help you with. Thanks for dropping by, wishing you and your business all the best!

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