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How do I post a credit against a purchase order?

I ordered parts from a vendor via a purchase order and they sent me an invoice. I entered the amount of the invoice into "pay bills". However there is a smaller amount that I overpaid them on a past invoice. How do I enter/reflect that in QB's to deduct the amount they owe me from the amount I currently owe them? Can and how would I reflect that on my bill when I send them payment? 

Thank you!!

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Best answer 12-10-2018

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Established Community Backer ***

"The vendor issued me a statement reflecting the credit o...

"The vendor issued me a statement reflecting the credit of the amount I overpaid. Nothing is entered in QB's yet. How do I enter a vendor credit?"

It's the same a a bill; look at the top of the Enter Bill, to mark this is a Credit.

"I want to pay the current amount I owe them less the overpayment/refund/credit (however it's said)."

You don't have a refund, if they didn't Send the amount of that credit. They are either Holding the credit to use on your behalf, or to Refund it, later. They expect you to Apply it, so there is no Refund.

"Sometimes these situations can be very confusing for a non-accountant person like me. Just want my books to balance. Thanks!"

You just keep track of everything, as you know about it.


4 Comments
Established Community Backer ***

"The vendor issued me a statement reflecting the credit o...

"The vendor issued me a statement reflecting the credit of the amount I overpaid. Nothing is entered in QB's yet. How do I enter a vendor credit?"

It's the same a a bill; look at the top of the Enter Bill, to mark this is a Credit.

"I want to pay the current amount I owe them less the overpayment/refund/credit (however it's said)."

You don't have a refund, if they didn't Send the amount of that credit. They are either Holding the credit to use on your behalf, or to Refund it, later. They expect you to Apply it, so there is no Refund.

"Sometimes these situations can be very confusing for a non-accountant person like me. Just want my books to balance. Thanks!"

You just keep track of everything, as you know about it.


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Thank you!

Thank you!
Established Community Backer ***

PO is never paid or not paid; it is a Tracking tool. "How...

PO is never paid or not paid; it is a Tracking tool.

"However there is a smaller amount that I overpaid them on a past invoice."

Are you still carrying a negative AP from that? Or, did they issue a Credit to you later, and did you enter a Vendor Credit, so that you have this negative AP, now?

"How do I enter/reflect that in QB's to deduct the amount they owe me from the amount I currently owe them?"

You always enter In Full = capture the Total Cost for what you are buying, each time. You are asking about a reduced Net payout for Banking, not a reduction for this Purchase.

"Can and how would I reflect that on my bill when I send them payment?"

The Bill is what you owe as Gross.

How you answer the Prior Overpayment will drive how you are able to Use that previous overpayment against what you owe, now, to end with a Reduced payout, now. Example: In Pay Bills, you can Apply vendor Credits to open bills, even if you are not paying the bill at this time.



Not applicable

Thank you for your reply. The vendor issued me a statemen...

Thank you for your reply. The vendor issued me a statement reflecting the credit of the amount I overpaid. Nothing is entered in QB's yet. How do I enter a vendor credit? I want to pay the current amount I owe them less the overpayment/refund/credit (however it's said). Sometimes these situations can be very confusing for a non-accountant person like me. Just want my books to balance. Thanks!

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