How do I use a vendor credit when I am paying the vendor bill? The credit does not apply to a specific invoice.

Not to worry, @cheryl47. I'll help you get that vendor credit applied to your vendor bill right away.

Have you recorded a vendor credit? If you got a credit on a future purchase, you'll have to enter a vendor credit, making it available for you to apply when you pay your bill.

Here's how to enter the vendor credit:

1. Click on the +New button.
2. Select Vendor Credit.
   
3. Select the vendor's name from the Vendor drop-down list.
4. Select the expense account from the Category drop-down list.
5. Enter the amount.
6. Select Save and close.
   

When you're ready to use the credit for your open bill, here's how to do it:

1. Select + New.
2. Select Pay bills or Pay bill.
3. Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
   
4. Complete the rest of the fields like you normally do.

These instructions are available from guide on entering a credit from a vendor. In case you got a refund for a business expense, check out this article on how to record a refund: Enter a refund from a vendor.

Please feel free to comment below if you have follow-up questions about applying vendor credit in QuickBooks Online. I’m always here to help.