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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 December 10, 2018

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Level 15

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

"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.

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Highlighted
Level 15

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

"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

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Anonymous
Not applicable

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

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.


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Level 1

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

Thank you, very helpful!
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Level 2

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

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
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Anonymous
Not applicable

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

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.)
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Level 1

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

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?

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QuickBooks Team

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

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.

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Level 1

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

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Level 1

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

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.

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QuickBooks Team

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

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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Level 1

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

I have a similar problem that I hope someone can help me with. Once we receive bills, enter and pay them, our approval dept has a habit of letting us know that the amount of the bill was too high.

For example, Bill 101 was entered for Vendor A for $20 and it was paid. We are then told that the bill should actually have only been $15.

Currently, we change the amount of Bill 101 and enter another line with -5.00 and a note saying who approved the credit.  The next week, we enter Bill 201 for $35 for the same vendor and when we pay bills, we apply the $5 credit to Bill 201 and we send Vendor A a check for $30.

The problem is that, at any time in the future, Vendor A can ask why we didn't pay the full amount for Bill 201 and we have no way of knowing without reviewing each invoice and looking for the credit.

Is there a way to list the credit and source on the bill payment report that we send the vendor? Is there another way to enter the credit so that it will show up on the report and still be linked to the original bill?

Any help will be greatly appreciated.

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Moderator

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

Thanks for the detailed information regarding your concern, TRosenberg.

 

I'll just use your examples so we know what we can do in the future if you encounter the same scenarios.

 

For the Bill 101 ($20), we could have created a vendor credit instead of editing it. This was the exact amount that your vendor knew and paid. The next time you encounter this scenario, we can create a credit which we can apply on the next bill:

  1. Click Vendors at the top menu and select Enter Bills.
  2. Select the Credit radio button.
  3. Enter the details of the credit.
    You can add a note in the MEMO field if necessary.
  4. Click Save & Close.

Then, you can apply this credit to the future bills of the same vendor just like you did for the Bill 201.

 

Meanwhile, we don't have the option to add credit details on the bill payment report you send to your vendors. You can add the credit details to the email body upon sending it.

 

On the other hand, we create and apply the credits the same way the others are doing. Here are the related articles about the credits:

We'll be right here if you need anything else.

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Level 1

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

Thank you for your response, JamesDuanT.

 

 

 

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Level 1

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

Can someone help! I am trying to record a refund from a cancelled show due to covid...

I entered a vendor Credit

Then I made the deposit entering the vendor name and the acct that I used when I paid the original bill (tradeshows)

Then I go to vendor - Pay bills, but there is nothing there with that vendor's name.

What am I missing?!!

Highlighted
Moderator

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

Hello there, @KMurphy1!

 

When creating a deposit as a refund from your vendor, you'll have to select your Account Payable account. This way, it'll be posted into your vendor's account so you can link it with the vendor credit. You can read through the scenario 2 in this article to learn more: Record a vendor refund in QuickBooks Desktop.

 

Lastly, here are articles you can read for ideas about how you can manage your vendors and expenses: Income and expenses for QuickBooks Desktop.

 

If you have any other questions, please let me know by leaving a comment. I'll be here to lend a helping hand.

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