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cschwarz7519
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!

Solved
Best answer December 10, 2018

Best Answers
qbteachmt
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

19 Comments
qbteachmt
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

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.


cschwarz7519
Level 1

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

Thank you, very helpful!
Deb72
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
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.)
judy2learn
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?

IamjuViel
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.

ezbookpro
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

judy2learn
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.

AldrinS
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!

TRosenberg
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.

JamesDuanT
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.

TRosenberg
Level 1

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

Thank you for your response, JamesDuanT.

 

 

 

KMurphy1
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?!!

JonpriL
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.

gaylt7
Level 1

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

I have received a credit from one of my vendors. The original invoice has already been paid. It is no longer listed under pay bills. Do i still need to enter the credit invoice under Enter Bills as a credit? When i do enter the credit, it will show as Available credits on the pay bill screen. How do i attach the credit to the original invoice? Or do i not enter the credit invoice and do as you mention in your post, as make deposit?

MirriamM
Moderator

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

Welcome to the thread, @gaylt7.

 

Since the original invoice is already fully paid, you can create a Deposit, as mentioned by my colleagues above, to record the reimbursement. Then, select the Accounts Payable account that you use in paying the bill. 

 

You may also want to consult your accountant to make sure this option best fits your scenario.

 

Additionally, you can visit this helpful article to learn how you can record refunds received from a vendor: Record a vendor refund in QuickBooks Desktop.

 

If there's anything else you need help with while managing your transactions, feel free to reach back out. The Community has your back. Have a good day.

TRosenberg
Level 1

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

My situation is a little different. No money is actually deposited. We just apply the credit to future bills.

Here is an example:

The vendor sends us a bill for $50 which we enter and pay.

Then they send us the same bill but revised for $40 with an explanation for the credited $10. We go to the original bill and add a line item with -10.00 and the explanation. This results in a credit that can be applied the next time we pay bills.

The vendor sends us another bill, this time for $20. We enter the bill, pay it and apply the $10 credit.

The vendor receives $10 in payment of the bill and they ask us why we only paid $10 instead of $20. We explain that there was a $10 credit on their account that we used to pay the bill BUT there is no way for us to figure out what bill the $10 credit came from. 

Is there a report that we can print that will show where credits come from? Is there a way we can look up  where the original credit came from?

Thanks.

Charies_M
Moderator

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

Hi there, TRosenberg.

 

I appreciate such detailed information about what you're trying to achieve in QuickBooks Desktop (QBDT).

 

Let's run the Transaction List by Vendor report and customize the filters to show where credits came from. Please follow the instructions below:

 

  1. Go to Reports.
  2. Select Vendors & Payables and choose Transaction List by Vendor.
  3. Click the Customize Report button.
  4. Go to Filters tab and enter Transaction Type. Choose Bill Credit.
  5. Filter other necessary information. Click OK.

Find out more about managing reports in QuickBooks Desktop through the following articles:

If you need other helpful articles in the future, you can always visit our site: Help articles for QuickBooks Desktop.

 

Feel free to drop a comment below if you have any other questions while working reports. I'm always happy to help. Have a good day.

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