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J4mes
Level 1

I still have an unapplied credit memo from a vendor and it reflected as negative amount in my Accounts payable part in Balance Sheet how will I fix this?

 
Solved
Best answer April 04, 2025

Best Answers
Anonymous
Not applicable

I still have an unapplied credit memo from a vendor and it reflected as negative amount in my Accounts payable part in Balance Sheet how will I fix this?

Hi there, @J4mes.

 

A negative vendor credit on a balance sheet report indicates an overpayment or a credit balance owed to the company by a vendor, meaning the company has paid more than the outstanding amount.

 

It appears as negative because creating a vendor credit will debit your Accounts Payable (A/P), which decreases the liability account. The amount will be zeroed out once you apply the vendor credit to your next purchase from the affected vendor or create a journal entry to credit the affected accounts.

 

Before doing so, I recommend reaching out to your accountant so they can guide you on which accounts to choose.

 

Additionally, you can take a visit to this article to learn how you can apply your vendor credit based on the steps that apply to you: Record a vendor refund in QuickBooks Desktop.

 

As always, you can reply to this post if you have additional questions about understanding your financial reports, @J4mes. The Community is available 24/7 to help you!

View solution in original post

Just_me
Level 11

I still have an unapplied credit memo from a vendor and it reflected as negative amount in my Accounts payable part in Balance Sheet how will I fix this?

@J4mes   It will zero out when you apply it to an invoice or return the credit amount to the person that paid it. 

View solution in original post

4 Comments 4
BigRedConsulting
Community Champion

I still have an unapplied credit memo from a vendor and it reflected as negative amount in my Accounts payable part in Balance Sheet how will I fix this?

From your description I don't see that there's anything to fix.  What do you see as needing fixing?

Anonymous
Not applicable

I still have an unapplied credit memo from a vendor and it reflected as negative amount in my Accounts payable part in Balance Sheet how will I fix this?

Hi there, @J4mes.

 

A negative vendor credit on a balance sheet report indicates an overpayment or a credit balance owed to the company by a vendor, meaning the company has paid more than the outstanding amount.

 

It appears as negative because creating a vendor credit will debit your Accounts Payable (A/P), which decreases the liability account. The amount will be zeroed out once you apply the vendor credit to your next purchase from the affected vendor or create a journal entry to credit the affected accounts.

 

Before doing so, I recommend reaching out to your accountant so they can guide you on which accounts to choose.

 

Additionally, you can take a visit to this article to learn how you can apply your vendor credit based on the steps that apply to you: Record a vendor refund in QuickBooks Desktop.

 

As always, you can reply to this post if you have additional questions about understanding your financial reports, @J4mes. The Community is available 24/7 to help you!

J4mes
Level 1

I still have an unapplied credit memo from a vendor and it reflected as negative amount in my Accounts payable part in Balance Sheet how will I fix this?

I don't want negative amount reflecting on our Financial statement. It's like we have hanging credits how will I 0 it out? 

Just_me
Level 11

I still have an unapplied credit memo from a vendor and it reflected as negative amount in my Accounts payable part in Balance Sheet how will I fix this?

@J4mes   It will zero out when you apply it to an invoice or return the credit amount to the person that paid it. 

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