anks for the quick response, @Kurt_M 

Please correct me if my understanding is wrong...

1. +new
2. Pay Bills
3. Select the bill I want to apply vendor credits against
4. Calculate how much of the available vendor credit $ available, then enter that amount into the 'Credit Applied' box
5. Since I'm not using QBO pay service, I assume I need to enter '0.00' into the 'Payment' box & then 'Save' or 'Save & Close' (since I don't want to schedule a payment)?
6. Then I can go back into the bill & confirm/change which vendor credit was applied

If this is correct, I can't get that to work. Will not allow me to 'Save' or 'Save and Close'.

I tried to select 'Schedule Payment' but I get an error that says "We're working on it...".

There's a simpler way to know what vendor credits you will apply to a bill, @RVLR. I'd be glad to discuss it in detail below.

Aside from using the Pay bills feature to mark the bill as paid, you can also utilize the Expense or Check options to close your open bills. Here's how:

1. Click the +New button.
2. Select Expense or Check.
3. Pick the correct vendor. A side window will appear showing a list of bills and available vendor credits for that vendor.
   
4. Tap the Add button to the bill you want to pay. From the Check or Expense page, you'll notice that the transaction will become a Bill Payment.
5. Scroll down to see the available vendor credits. Place a checkmark on them accordingly.
   
6. Once done, hit Save and Close to complete the process.

Furthermore, you can take note of the vendor credits' Ref no. to identify them easily.

Regarding the Schedule online payment error, did you see a specific message on why you're unable to choose the Save or Save and close button?

Otherwise, ensure to select a Payment account first, then enter the vendor credit amount and include the remaining balance in the Payment column so it will not be recorded as a partial payment. Finally, simply click the dropdown beside Schedule payment to show the Save or Save and Close option. See the screenshot below for your visual reference:

Additionally, you'll want to check out this article for the detailed steps in case you need to review all your vendor transactions: How to view and edit vendor transactions in QuickBooks Online.

You can count on me to provide further related resources and details about handling vendor credits. Kindly comment with any questions, and I'll ensure a prompt response.

Thank you!

Not one of the multiple people I spoke to when I had QBO HELP call me knew this method. So frustrating.

Only issue now is that it doesn't allow me to ONLY apply the vendor credits to the Bill. It forces me to "pay the bill" in total, instead of reducing the balance owed on the bill. Doing that removes it from my open bills & marks it as paid, and therefore my connection with Melio billpay then shows it as paid. I suppose I could manually make a payment, but seems to me this defeats the purpose of using the software (& drives me nuts).

I appreciate you for responding, RVLR. Let me share how you can apply vendor credits only to a bill in QuickBooks Online.

To view and apply available credits to a vendor,  make a payment to the bill through the Expense or Check options my colleague shared above. You can also mark the bill as paid.

Here's how to do it:

1. Go to the Expenses page.
2. Locate the bill.
3. Click Mark as paid.
4. Select the available credits.
5. Press Save and close.

I left a screenshot below for your guidance.

For more info on tracking bills and recording their payments, refer to this article: Enter and manage bills and bill payments in QuickBooks Online.

For future use, here's a guide on generating reports to obtain valuable info on your accounts payable: Run reports.

Come back to this post if you have other concerns about your bills in QuickBooks, RVLR. I'll be right here to assist you.

Thanks @AnneMariee 

While that's an even faster way to get there (and yet another method to the same thing, of which NO ONE I have spoken to on QBO Help calls knew or told me about), it still does not allow me to leave the balance (after applying the vendor credits) as unpaid. I've tried multiple ways but none (that I could figure out) allow me to apply the vendor credits and then leave the bill open balance as unpaid (which then allows my Melio connection to make payment).

I must be missing something or just not enough experience with QBO.

Thank you for your prompt response, RVLR. Let me provide some insights about applying a vendor credit to a bill.
 

In QuickBooks Online (QBO), there's a specific workflow for applying vendor credits when paying bills online. It's important to note that when you pay bills online in QBO, the system does not allow you to apply for a vendor credit at the time of payment.

Instead, you'll need to apply the credit to the bill beforehand, and then proceed with the online payment.

For future reference, if you want to generate a report  to see all payments you made to your vendors, feel free to scan this article: Run a report with vendor totals.
 

Feel free to drop a comment if you have additional questions, I'll be glad to assist you.

@lou thanks for your response, however that still doesn't help me. There has got to be a way for me to apply vendor credits, but leave the remaining balance due on the bill/open.

Hello, RVLR. I see the importance of managing your vendor credits and paying your bills online.

While there are different approaches for managing a vendor credit against a bill, the workflow you're attempting to accomplish when paying bills online isn't possible. As mentioned by my colleague @LouiseG, you must apply the credit to the bill before making the online payment.

You can check out this article for more information about handling vendor credits: Enter vendor credits and refunds in QuickBooks Online.

If any of your vendor transactions will have an impact on your inventory quantity, please visit this link: Adjust inventory quantity on hand in QuickBooks Online.

If you have any additional questions or concerns regarding vendor credits, don't hesitate to ask them in the comment section below. I'm here to help you maximize the efficiency of your QuickBooks Online experience by streamlining your accounting procedures.

Make payment button is missing

Hello, @yes10. I'll be sharing information about the missing payment button.

To ensure we provide you with the most accurate guidance, I'd like to ask what transaction the payment option you're referring to.

If this is related to the Bill Pay feature, the Make Payment option in QuickBooks Online (QBO) has been changed to Schedule Online Payment. You can select the option mark as paid when making a bill payment. 

If this isn't what you mean, please provide more details so we can assist you effectively. Additional screenshots can also be helpful.

In the meantime, I’m attaching an article for future reference about handling multiple bills and vendors: Enter and pay bills.

Please reply with this information when you have a moment. We are here to assist you and look forward to resolving your concern.