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Level 1

how to apply customer credit to bill payment

I have a vendor who is also a customer.  Sometimes he deducts the amount he owes us from what we owe him.  I still have to cut him a check for the difference.

How do I apply his customer credit from our bill payment check?

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QuickBooks Team

how to apply customer credit to bill payment

Hello there, @itsbonnie1.

 

Glad to see you here in the Community. I can help you record and apply the customer's credit to the bill.

 

Let's start by creating a Bank Account called Transfer A/R and A/P. After that, you will need to enter and pay the bill:

  1. Click the Plus icon.
  2. Choose Bill.
  3. Enter the necessary information.
  4. Click Save.

Here how to pay the bill:

  1. Click the Plus icon.
  2. Choose Pay Bill.
  3. Choose the Transfer A/R and A/P account.
  4. Put a check mark on the bill transaction.
  5. Enter the credit amount.
  6. Click Save and close.

Then, you will have to record the invoice and the payment. On the Receive Payment screen, make sure to choose Undeposited funds for the Deposit to field. To zero out the Transfer A/R and A/P account, make a deposit.

 

There you have it. And of course, I’m still here to help you if you have other concerns. Have a good one!

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