How do i post a credit from a vendor for a specific customer of mine?

Welcome to the Community, Mberry.

You've come to the right place. It would be my pleasure to help you transfer the credit from the vendor to your customer.

A good way to handle this is to set up a Barter account and then make a journal entries to move the credit. The steps below will guide you through that process:

To create the barter account

1. From the Lists menu, select Chart of Accounts.
2. Click the Account drop-down menu and choose New. You could also press CTRL + N.
3. Select Bank, then hit Continue.
4. Enter the Account Name.
5. Click Save & Close.

To record the entry to move the credit to the Barter account

1. From the Company menu, select Make General Journal Entries.
2. On the first line, credit Accounts Payable with the amount to be transferred.
3. In the Name column, enter the vendor from whom the credit is coming.
4. On the second line, debit the Barter account with the same amount.
5. Click Save & Close.

To record the entry to transfer the credit to the customer

1. From the Company menu, select Make General Journal Entries.
2. On the first line, debit Accounts Receivable with the amount to be transferred.
3. In the Name column, select the customer who will receive the credit.
4. On the second line, credit the Barter account.
5. Click Save & Close.

I'm also including an article for more information about this process: How to record a barter transaction

Just a heads up, this method can impact your books and you may wish to seek additional guidance from an accounting professional. Every business is unique and they can make suggestions on how to handle this. If you're not affiliated with one, our Intuit Find-A-ProAdvisor site can help you to find certified professionals in your area.

Don't hesitate to reach out to me here in the Community with any additional questions or concerns you may have. Thanks for dropping in, wishing you and your business only the best.

I am using Desktop pro. Single member LLC

I received a credit from a vendor in the form of direct deposit, this credit is not tied to any invoice or product. When matching my bank feeds, I entered the credit from the vendor, to my accounts payable. So now I have the credit amount showing as a balance in my AP. What are the steps now to record this so my AP balance is 0? I was told through chat to enter a journal entry for this, but I am not sure how to do so.

Hi there, quinn1.

It shows a balance in your Accounts Payable because the refund was not tied to a transaction or item. Was the credit sent because of a rebate, reward incentive, refund, or reimbursement? If so, follow these steps to properly record the transaction and zero out the balance in your AP:

Record a Bill Credit for the amount of the Vendor Check

1. Go to the Vendors menu and select Enter Bills.
2. Select the Credit radio button to account for the return of goods.
3. Enter the name of the vendor.
4. Proceed to the Expenses Tab and enter the Accounts you would normally use for refunds. If you're not sure which account account to select, we recommend reaching out to your accountant to make sure the transaction is recorded properly.
5. Enter the amount in the Amount column for each accounts.
6. Click Save & Close.

Link the Deposit to the Bill Credit

1. Go back to the Vendors menu and select Pay Bills.
2. Check the deposit that matches the vendor check amount.
3. Click Set Credits and apply the Bill Credit you created earlier, then click Done.
4. Click Pay Selected Bills.
5. Click Done.

More options are also available here depending on the reason why the credit was sent: Record A Vendor Refund In QuickBooks Desktop.

The Community is always here if you have other questions. 

What if the credit is less then the invoice, how would you post it then? I followed the steps but when I click on the invoice for the credit of one amount and the invoice is more, it won't let me change the dollar amount.

Hello, Financing101.

If you want to partially pay the bill using the credit, make sure the AMT TO PAY column is 0.00. 

Here's how:

1. Open the Bill and click the Pay Bill icon.
2. In the Pay Bills window, click the Set Credits button under the Number of Credits field.
3. Put a check mark on the credit you want to apply and click Done.
4. Under the AMT TO PAY column, edit the amount to 0.00.
5. Select Pay Selected Bills and then Done.

When you open the bill, you will see the Opening balance under SUMMARY located on the left panel. You can go to Vendors > Pay Bills to pay the remaining amount.

Please feel free to leave a comment if you have any additional questions. I'm only a post away to help you some more.