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quickbooks6
Level 1

How do you issue a credit to expense account?

Amazon creates provisions which are initially added as expenses, and then they reverse these provisions later on.  I would like to issue a credit to my expenses, and tried creating a negative expense, however, when doing that, it tells me to enter an amount greater than zero.

 

Is there any way around this?

8 Comments 8
Mark_R
Moderator

How do you issue a credit to expense account?

Your confusion ends here, @quickbooks6.

 

Allow me to fill you in on everything you need to know about applying credit to an expense account.

 

In QuickBooks Online (QBO), you can only apply vendor credits to the transactions affecting the Accounts Receivable account (A/P), like bills. As a workaround, you can consider adding the credit as another line to your expense transaction. Here's how:

 

  1. Locate and open the expense transaction.
  2. In the Category section, add the credit as another line.
  3. Enter a negative amount.
  4. Click Save and close.

 

By doing this, it'll offset the balance of the expense account. However, I still encourage seeking help from your accountant for more guidance. If you don't have an accountant, you can find one using this link.

 

Just in case you want to get a report on all money paid to a vendor for the year, you can run and customize the Transaction List by Date report. For the detailed steps and information, feel free to check out this article: Run a report with vendor totals.

 

I'm still open to your replies if you have additional questions about applying vendor credits in QuickBooks Online. Have a great day ahead!

quickbooks6
Level 1

How do you issue a credit to expense account?

It does not allow me to do this.  This is the message I get:

 

Something's not quite right
You must specify a transaction amount that is 0 or greater.
2021-08-12.png
LieraMarie_A
QuickBooks Team

How do you issue a credit to expense account?

Hi there, @quickbooks6. Allow me to add some clarifications to get this straightened out.

 

You'll have to open the expense that you created for the provisions. On the second line, add the same account and enter the amount as negative.

 

Here's how:

  1. Go to the Expenses menu and select the Expenses tab.
  2. Locate and open the transaction
  3. In the Category section, add a new line and select the account
  4. Enter a negative amount.
  5. Ensure that the total amount is 0 or greater.
  6. Click Save and close.
    Capture.PNG

 

Doing this will offset the balance of the expense account. I'd still recommend seeking professional advice from your accountant about this. They can help you properly handle this type of scenario. You can also reverse a transaction using a journal entry.

 

We've always got your back if you need further assistance in managing your expenses. I look forward to being able to help you again in the future. Have a wonderful day.

quickbooks6
Level 1

How do you issue a credit to expense account?

Thank you, however this may not work for me.  

 

I need to add an entire negative expense as some reversal numbers are larger than the expense itself.

 

For example here, it will not let me save this line item.

JoesemM
Moderator

How do you issue a credit to expense account?

Thanks for the prompt reply and for sharing the screenshot, @quickbooks6.

 

Based on the screenshot you've shared, it looks like another user already enters the same transaction as yours. That's why you get an error message when you save the transaction.

 

To check who created the transaction, let's go to the Audit Log, here's how:

 

  1. Go to Settings ⚙and select Audit Log.
  2. Select Filter.
  3. Use the fields on the Filter panel to choose the appropriate UserDate, or Events filter to narrow the results.
  4. Select Apply.

 

For most transactions or events, select View in the History column to open the audit history. This tells you who made the change and what they did. For reference, see this article:  Use the audit log in QuickBooks Online.

 

Also, make sure the positive amount is higher or balance with the negative expense with the one you've added. This way, it will zero out the amount, and you can save it without an error message. Just follow the steps shared by my colleague above.

 

In case you want to account those remaining negative amounts, you can create a journal entry and select the expense account affected. That said, I'd suggest consulting your accountant for further assistance on how to properly record them.

 

For more information on how to create a journal entry, click this article: Create a journal entry in QuickBooks Online. It also contains a video tutorial.

 

For your reference, I'm also adding here some resources that you can scan through that can help you in managing vendors transactions and how to reconcile your account: 

 

 

Drop a comment below if you have other concerns about recording expense transactions or inquiries about QuickBooks. I'm just around to help. Take care always.

quickbooks6
Level 1

How do you issue a credit to expense account?

I only have one user.  It wil not let me enter a credit that leaves a negative expense and that is the strange error that it gives.2021-08-12 (4).png

 

AbegailS_
QuickBooks Team

How do you issue a credit to expense account?

We understand the challenges you're having in entering a negative expense, @quickbooks6.

 

Allow me to share some additional information that can help you with the process.

 

Entering a negative amount that is higher the actual expense amount isn't achievable in QBO. Please make sure to enter an amount that is either zero or greater than zero.

 

If you want to create a report for expenses, here's how:

  1. Go to the Hamburger icon and click on the Reports menu.
  2. Enter in the search tab, "Expenses Vendor by Summary".
  3. You can customize your report on your desire by clicking the Customize button.
  4. Verify the details and select Run report.

 

Also, I'm leaving this a handy article about capture receipt in QuickBooks: Capture and categorize receipts and bills. This link includes the workflow and how to categorize and match the receipts and bills. 

 

Do you need help in balancing your books? Learn the process of reconciliation by clicking this link: Learn the reconcile workflow in QuickBooks.

 

If you have other questions in mind about expenses, feel free to let me know. I’m only a comment away.

quickbooks6
Level 1

How do you issue a credit to expense account?

I really need to add a reversal credit to my expenses.  Is there another way or do we have to do this manually?

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