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bvo
Frequent Contributor *

How to apply a credit to a vendor after a bill has been paid?

I've created a holding account (bank) to pay for shipping labels created with Stamps.com. I don't want to connect Stamps.com with quickbooks at this time. Stamps.com works by depositing funds into my business account which are used to pay for the labels I need to print for my business.

 

In some rare cases the labels issued need to be cancelled (error on the label or customer decides to cancel the order), for which on the stamps.com side I request a refund and done.

 

However when it comes to record this refund on quickbooks I'm running into weird $0 entries on the register and ghost stub with the message "QuickBooks generated zero amount transaction for bill payment stub". I'm using QB Desktop Pro 2019 by the way.

 

I process the credit to the vendor as explained in scenario 1 on this link https://quickbooks.intuit.com/community/Help-Articles/Record-a-vendor-refund-in-QuickBooks-Desktop/m...

 

I'm not actually using the credit to pay another bill the moment I'm processing the credit, instead the money goes back to the stamps.com bank which is used on future label purchases.

 

What am I doing wrong?? And how can I fix/delete the ghost stubs created so far?

 

Thanks in advance for the help.

 

 

Solved
Best answer 05-13-2019

Accepted Solutions
Moderator

Re: How to apply a credit to a vendor after a bill has been paid?

Thanks for coming back to the Community, bvo.

 

I'm here to share some insights about the zero dollar transaction.

 

Once a bill has been fully paid using a vendor credit or discount, QuickBooks will automatically create a zero dollar payment check with a memo "QuickBooks generated zero amount transaction for bill payment stub".

 

You can leave the zero checks or delete them. Don't worry about deleting them as it will not affect the credits applied to the bill.

 

  1. Open the Bill Payment (Check).
  2. Click Delete.
  3. Choose Delete Check.
  4. Select Yes to confirm.

image.png

That should get you on the right track. Please let me know how that works for you. I'm here provide you additional assistance if you need anything else. Have a good one.
 

7 Comments
QuickBooks Team

Re: How to apply a credit to a vendor after a bill has been paid?

I can help you to apply a credit to a paid bill, bvo.

 

The best way to apply credit is to delete the payment. Deleting it causes the paid bill to return to unpaid status. To delete it:

  1. Open the transaction.
  2. Select the Edit menu.
  3. Hit Delete Bill/Bill Pmt-Check.

Once done, process payment and apply the credit.

  1. Click Vendors and choose Pay Bills.
  2. Select the bills by putting check marks on the box.
  3. Click Set Credits. Then, Done.

Please let me know if you have other concerns.

bvo
Frequent Contributor *

Re: How to apply a credit to a vendor after a bill has been paid?

I don't think deleting a payment that actually took place and that has a paper trail is the right way to go to apply a vendor credit, or at least it shouldn't be. If money or value is changing hands, then these details must be recorded in the books.

Thank you but your solution would eventually end up in a nightmare if we ever get audited not mentioning it creates a cash flow mess.

The bill was paid which means the money actually came out of one of our bank accounts and placed in the stamps.com holding account. We should be able to record those transactions (the transfer of the money to the stamps.com holding account, the payment of the bill and the refund after) without getting those $0 entries in the register unless, that's what ties the entries together(?) or I'm doing it wrong(?).

 

QuickBooks Team

Re: How to apply a credit to a vendor after a bill has been paid?

Thanks for the update, @bvo.

 

I appreciate you checking out the solution provided by my colleague.

 

You’re already on the right path creating the vendor credit. The next step is to create a bank deposit. Here’s how:

  1. Go to Banking menu and select Make Deposits
  2. If the Payments to Deposit window appears, click OK.
  3. Select the vendor on the Received from drop-down.
  4. Choose Accounts Payable for the From Account.
  5. Enter the amount of credit in the Amount column.
  6. Click Save & Close.

Make deposit 1.PNG Make deposit 2.PNG Make deposit 3.PNG

 

Right after, link the bank deposit to the vendor credit. Follow the steps below: 

  1. Go to Vendors menu at the top and select Pay Bills.
  2. Put a checkmark on the Deposit that matches the credit amount.
  3. Click Set Credits.
  4. Apply the Credit, then choose Done.
  5. Hit Pay Selected Bills, then Done again.

link credit 1.PNG link credit 2.PNG link credit 3.PNG

 

This information should help record the transaction correctly. For reference, check out this article: Record a vendor refund in QuickBooks Desktop.


Keep me updated on how that goes for you. I’m more than happy to help. Have a great day!

bvo
Frequent Contributor *

Re: How to apply a credit to a vendor after a bill has been paid?

Thank you for taking the time to guide me through KhimG.

 

That's exactly what I've been doing, as I mentioned in my original post, which causes me to end up with a 0.00 entry on the bank register and a stub with the memo "QuickBooks generated zero amount transaction for bill payment stub".

 

So either a) the 0.00 entry on the register/stub with the memo are part of the process in which case I'll leave it like that, despite everywhere I look everyone agrees this is an error, or b) the 0.00 on the register/stub is not part of the process in which case I do have an issue I have no idea how to solve.

 

Moderator

Re: How to apply a credit to a vendor after a bill has been paid?

Thanks for coming back to the Community, bvo.

 

I'm here to share some insights about the zero dollar transaction.

 

Once a bill has been fully paid using a vendor credit or discount, QuickBooks will automatically create a zero dollar payment check with a memo "QuickBooks generated zero amount transaction for bill payment stub".

 

You can leave the zero checks or delete them. Don't worry about deleting them as it will not affect the credits applied to the bill.

 

  1. Open the Bill Payment (Check).
  2. Click Delete.
  3. Choose Delete Check.
  4. Select Yes to confirm.

image.png

That should get you on the right track. Please let me know how that works for you. I'm here provide you additional assistance if you need anything else. Have a good one.
 

bvo
Frequent Contributor *

Re: How to apply a credit to a vendor after a bill has been paid?

Thank you PreciousB.

I thought the 0.00 entries were actually an error caused by a mistake on my part.

Good to know that's not the case.

Cheers!

Moderator

Re: How to apply a credit to a vendor after a bill has been paid?

Thanks for getting back and sharing your thoughts about the entries, @bvo.

 

I'm glad my colleague @PreciousB was able to clear out things for you.

 

Should you need some helpful references in the future, please feel free to visit our site: Help articles for QuickBooks Desktop.

 

As always, if you have other questions about vendor credits, the Community folks and I are here to help. Have a good one.