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How do I apply a vendor credit to the amount owed to vendor?

 
Solved
Best answer 10-15-2018

Accepted Solutions
QuickBooks Team

Hello ecastillo, I'd be happy to assist you. Here's how y...

Hello ecastillo,

I'd be happy to assist you.

Here's how you can pay your bills using your vendor credit:

  1. Click on the Plus sign (+) icon, then choose Check.
  2. Select the vendor.
  3. Under Add to Check, add the Bill and Vendor Credit.
  4. Click Save and close.
I have attached a screenshot for your reference.

Let me know if you need something else. Have a great day! 

View solution in original post

16 Comments
QuickBooks Team

Hello ecastillo, I'd be happy to assist you. Here's how y...

Hello ecastillo,

I'd be happy to assist you.

Here's how you can pay your bills using your vendor credit:

  1. Click on the Plus sign (+) icon, then choose Check.
  2. Select the vendor.
  3. Under Add to Check, add the Bill and Vendor Credit.
  4. Click Save and close.
I have attached a screenshot for your reference.

Let me know if you need something else. Have a great day! 

View solution in original post

qoa
Community Explorer **

Re: How do I apply a vendor credit to the amount owed to vendor?

I go into the original invoice (if unpaid) and add a new line item to the invoice "RETURN" with the Credit Memo #, and enter the credit amount as a NEGATIVE item.  It adjusts the total due on the invoice immediately.  If the invoice is already paid, I suppose I could just enter the Credit as a NEGATIVE Bill.

Moderator

Re: How do I apply a vendor credit to the amount owed to vendor?

Hello qoa,

 

In QuickBooks Online, we can create a credit memo and apply it as payment to an invoice. You can check out this article for the detailed steps: Apply a Credit Memo, Credit or Refund to a Customer.

 

Meanwhile, we're unable to create bills with negative amounts. Instead, we can enter it as Vendor Credit:

  1. Click the Create menu (+) and select Vendor Credit.
  2. Enter the vendor name and the credit details for the vendor. Make sure the amounts are positive.
  3. Click Save and close.

You can use the vendor credit as payment for an open bill. Here's how you can apply it to the open bill:

  1. Open the bill you want to pay.
  2. Click the Make payment button.
  3. In the Bill Payment window, the bill is mark in the Outstanding Transactions section.
  4. Go to the Credits section and mark the vendor credit.
  5. Click Save and close.

Feel free to browse this article for more information about vendor credits: Manage Vendor Credits.

 

Let us know if you need anything else. 

Not applicable

Re: How do I apply a vendor credit to the amount owed to vendor?

How would I apply a credit to an overall amount do to a vendor?  Meaning, we were invoiced a couple of months ago, so the invoice has already been paid, then made a return this month, so the original invoice has been paid, but we still need to take the credit?

 

Thank you in advance!

 

Steve

QuickBooks Team

Re: How do I apply a vendor credit to the amount owed to vendor?

Hello there, Steve99.

 

If you're trying to record a credit/refund for a returned item, you'll have to enter a deposit, then link it to the vendor credit. 

 

First, you'll have to enter the refund as a deposit. Here's how:

  1. Click the Plus sign (+) icon.
  2. Choose Bank Deposit.
  3. Under Add funds to this deposit, choose the vendor name in the Received from field.
  4. Choose Accounts Payable in the Accounts field, then enter the credit/refund amount in the Amount field.
  5. Click Save and close.

Next, link the deposit to the vendor credit. Here's how:

  1. Click the Plus sign (+) icon.
  2. Choose either Expense or Check.
  3. Choose the vendor name.
  4. On the right pane, under Add to Expense/Check, add the deposit by clicking Add.
  5. Click Save and close.

Though, if you want to apply a vendor credit to a bill, check this article for the steps (Scenario 2): Manage vendor credits.

 

We're here if you have other concerns. We'd be happy to help you. 

Not applicable

Re: How do I apply a vendor credit to the amount owed to vendor?

Thank you!

QuickBooks Team

Re: How do I apply a vendor credit to the amount owed to vendor?

You're always welcome, Steve99.

 

If you need help with QuickBooks Online, don't hesitate to reach out to us. I wish you a nice day! 

Not applicable

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

I have no idea where you started.

I am in vendors>pay bills. I have selected the vendor which has open invoices and a credit balance.

Now what?

QuickBooks Team

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

Thanks for reaching out to us, @crusty.


The solutions shared by my colleagues are all different ways to link a vendor credit to a bill. In your situation, the steps you took are correct.


To apply the existing credit to an open vendor transaction, use the Pay Bill feature. Here’s how:

  1. Go to the Plus icon and select Pay Bills.
  2. Choose the vendor from the list.
  3. Once selected, the vendor's existing credit populates on the Credit Applied column.
  4. Hit Save and close to apply the credit to the vendor open balance.

pay bill vendor credit 1.PNG pay bill vendor credit 2.PNG

 

Refer to this article for more information: Enter and pay bills.

 

That should do it. Let me know if you have any issues after following those steps. I’m always here to help. Have a good one!

Not applicable

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

Hi There,

 

Is this for QB online because I don't have a plus sign on desktop.

 

Thank you,

Stacy

QuickBooks Team

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

Glad to have you here, @FHGC.

 

Yes, the answers given by my colleagues above are for QuickBooks Online. I can definitely share with you the steps on how to apply vendor credits to a bill in QuickBooks Desktop.

 

Applying credits to a bill can be done in just a few clicks:

  1. Click on Vendors at the top menu bar.
  2. Select on Pay Bills.
  3. Choose the bill that you wish to be paid.
  4. Click the Set Credits button at the bottom to apply credits.
  5. Once done, click on Pay Selected Bills.

Please check out the screenshots below to outline the steps:

vc1.PNG vc2.PNG

 

You may also read through these following links for more insights about handling credits:

If you need further assistance with this process, feel free to get in touch with our Customer Care Team. They have extra tools that can walk you through the steps. 

 

Be sure to let me know if you have any other questions about paying bills. I got you covered with any QuickBooks concern. Thanks for coming to the Community, wishing you continued success.

Not applicable

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

Thank you so very much!

Not applicable

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

Using Quickbooks online, and we have dozens of bills to pay to each vendor with dozens of credits....many that need to be edited when the final statement comes in.  Using the "Pay Bills" option does not let us see the credits that are being applied (since it only populates amounts), and going through the "Make A Payment" option on the Vendor screen does not allow us to pop back and forth while editing the payment amount and the vendor credit amounts.

 

Please help us make this more like the traditional Quickbooks desktop version.  It is taking hours to pay bills!!

QuickBooks Team

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

Hello AccountantJr,

 

You'll have to click on the credit applied column to see the available credits. Let me guide you through how so you can apply them to your bills.

  1. Click the (+) Create icon.
  2. Click Pay Bills.
  3. Locate the vendor's name, then click the Credit Applied column. You'll see the available credit amount below the field.
  4. You can also edit the amount in the Payment column.
  5. Click Save and close.

I've attached some screenshots for you.

 

Also, you can use the side scroll bar to move back and forth when you're in the Vendor screen.
 

You can read this handy article for more information: How to enter and pay bills.

 

Feel free to visit our page for future reference: Income and expenses.

 

Please leave a comment anytime if you have other questions.

 

 

Community Contributor *

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

I have a vendor credit entered in QBO, however, even when I follow your instructions and go to Pay Bills, and click on the credit applied column my vendor credit does not show.  So, I would already have to know how much the credit is before I go in to Pay Bills, and then manually enter the credit amount.  What is the point of having a vendor credit, if it does not show when you go to pay bills?  I only see it when I go into the vendor profile.  The desktop version of QB for Mac used to show the vendor credit in Pay Bills and you could easily select the credit and the amount due to the vendor was automatically decreased.  This really needs to be fixed in the online version.

Highlighted
Moderator

Re: Hello ecastillo, I'd be happy to assist you. Here's how y...

Hello there, @Ele-Mo.

 

Thank you for taking the time posting in the Community and sharing your experience in using a vendor credit. Let me share another way to apply the vendor credit as payment for an open bill. 

  1. Open the bill you want to pay.
  2. Click the Make payment button.
  3. In the Bill Payment window, the bill is mark in the Outstanding Transactions section.
  4. Go to the Credits section and mark the vendor credit.
  5. Click Save and close.

For more reference, you can use the following link to learn your way around with QuickBooks Online: Video tutorials.

 

Please know that I'm just a post away if you have any other questions. I'll be happy to help you out. 

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