Purchase order and bill

Thanks for joining this thread, @JRH2.

You can follow the steps shared by my colleague DivinaMercy_N above if it's a vendor credit. This will record returns to vendors or refunds from vendors.

Then, you can apply the credit to a bill, here's how:

1. Click Vendors, then click Pay Bills.
2. Select the bill under the Show bills section.
3. Scroll down towards the Discount & Credit Information For Highlighted Bill section, click the Set Credits button.
4. Click the Credits tab, then mark credit balance to use.
5. Click Done. Then, click Pay Selected Bills.
6. Click Done when prompted.

Once done, you can pull up the Transaction List by Vendor report to see the vendor's payment, bill, and credit applied.

Here's how:

1. Click Reports.
2. Click Vendors & Payables, and then Transaction List by Vendor.
3. You can also click on the Customize Report button at the top to filter the report.

You can also find these transactions in the vendor's profile. The credit is posted in the Balance Total column.

I've added these articles that can help you manage your transactions in QuickBooks:

• Record a vendor refund in QuickBooks Desktop.
• Customize reports in QuickBooks Desktop.
• Accounts Payable workflows in QuickBooks Desktop.

Please know that I'm always around here in the Community to help. Keep safe, and have a good one.