Partial payment and vendor credit

DarcyS · ‎February 10, 2021

I have a bill from October that was partially paid in October. then vendor then gave a discount on the second half of the bill. I created and applied the vendor credit and finished paying the bill in December. The December income statement only shows the vendor credit and not the payment I made on the expense. It shows it all in October. How can I get it to show the money spent in December?

Mark_R · ‎February 11, 2021

Thank you for getting back to us, @DarcyS.

Allow me to fill you in on everything about the posting of bill payments on a report.

The report will show payments depending on the accounting method you use. Since the full payment is showing in October, the accounting method you use for your Profit and Loss report may be accrual. The accrual method shows your completed and pending transactions on your financial reports. While the cash method shows only completed transactions, like the date when you completely finished paying your bills.

You'll want to change the accounting method on your Profit and Loss report to show the full payment in December. I've attached a screenshot below of your visual reference.

I'm adding this article to know more about the common accounting terms: Learn common accounting terms.

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

View solution in original post

Rea_M · ‎February 10, 2021

I'm here to ensure you're able to accurately record your bill payments in QuickBooks Online (QBO), @DarcyS. This way, you can keep your vendor account updated and monitor expenses accordingly.

It's a best practice to record bill payments in line with your real-life transactions. Based on your description of the issue above, you may have recorded the full payment in October instead of the partial amount. To fix this, you'll first need to delete the full payment transaction. Then, record the partial (October) and 2nd payment amount (along with the credit for December) using the appropriate date.

To record a partial payment, here's how:

Go to the + New button.
Select Pay bills.
From the Payment account drop-down, select the account you paid the bill from.
Enter the Payment date (October date).
Select the checkbox for the bill you made a payment towards.
In the Payment column, enter the partial payment amount.
Click Save or Save and close.

After that, record the 2nd payment along with the vendor credit. Make sure to indicate the December payment date. You can refer to this article for the detailed steps: Enter and manage bills and bill payments in QuickBooks Online.

Also, I'd recommend pulling up the Bills and Applied Payments report. This way, you can verify that the payments you've recorded are applied to the bills accordingly. Just go to the What you owe section from the Reports menu's Standard tab.

Please don't hesitate to let me know if you have other concerns about managing vendor transactions in QBO. I'm just around to help. Take care always.

DarcyS · ‎February 11, 2021

Thank you for your help but I am still at a loss. Although I did all of this the first time around, I deleted it all and started over. The bills and applied payments report shows the accurate payments for October and December but my P&L for December is only showing the credit applied (in December) and the full payment is showing on the October P&L only (even though the final payment was made and applied with the December credit in December). What do I need to do to show the money spent in December?

Mark_R · ‎February 11, 2021

Thank you for getting back to us, @DarcyS.

Allow me to fill you in on everything about the posting of bill payments on a report.

The report will show payments depending on the accounting method you use. Since the full payment is showing in October, the accounting method you use for your Profit and Loss report may be accrual. The accrual method shows your completed and pending transactions on your financial reports. While the cash method shows only completed transactions, like the date when you completely finished paying your bills.

You'll want to change the accounting method on your Profit and Loss report to show the full payment in December. I've attached a screenshot below of your visual reference.

I'm adding this article to know more about the common accounting terms: Learn common accounting terms.

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

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