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LMC-1
Level 2

Supplier pays our warranty claim invoice with a credit. How do i post it?

My company does warranty repair work for customers then invoices the supplier who warrantys the item.   The supplier is usually also one of our vendors. The supplier "pays" our invoice with a credit we can apply to our payables from them. I understand how to apply a vendor credit in payables, but how can I also apply the credit as payment to the warranty invoice? That credit is income that covers our labor cost. It would be great if vendors and customers could be the same (linked maybe?) if they are of the same identity.  I would appreciate ANY help with this! Thanks in advance 🙂

5 Comments 5
KlentB
QuickBooks Team

Supplier pays our warranty claim invoice with a credit. How do i post it?

I can share some insights about how vendor credits, LMC-1.

 

Please know that QuickBooks Desktop tracks your vendor purchases and customer sales separately. This means that the program will recognize the vendor credit as receivable not a payment when you try to post it on the customer side. Thus, we're unable to apply a vendor credit to an open invoice.

 

You can only use the vendor credit as payment for an open bill. To ensure that your records are accurate, I recommend consulting an accounting professional in handling these transactions. If you don't have an accountant, you can find one here: Find a ProAdvisor.

 

Additionally, here's an article that you can read to help manage your vendor and customer transactions:

I'm just a comment away if need more help in completing your other tasks and duties. Have a great rest of the day.

LMC-1
Level 2

Supplier pays our warranty claim invoice with a credit. How do i post it?

I am grateful for your help but again, I understand all of that. I am still left with how to accurately mark my invoice as "paid" when I am paid with a credit. My labor needs to be accounted for and that credit is my income. How do I apply a credit as a payment on an invoice? Thank you for taking your time to help!

MariaSoledadG
QuickBooks Team

Supplier pays our warranty claim invoice with a credit. How do i post it?

Let me guide you on how to apply for credit as a payment to your invoice, LMC-1.

 

You can follow these steps on how to it: 

  1. Click Customers in the top menu bar and select Receive Payments.
  2. Click the Received From drop-down arrow and select the customer's name.
  3. You will see the available credit amount at the bottom of the window.
  4. Select an invoice and click the Discount & Credits button/
  5. Select the correct credit you need to apply from the window and adjust the amount, if needed, in the Amount to Use column.
  6. Click Done.

For more information about transferring customer credit, please visit this article for more information: Transfer Customer Credit From One Job to Another. You'll want to add and match bank transactions in QuickBooks Desktop.

 

Fill me in if you need anything else about applying for credits. Remember, we're here to help you all the time.

LMC-1
Level 2

Supplier pays our warranty claim invoice with a credit. How do i post it?

Thank you so much for your reply but that does not answer the question I was asking. I really do appreciate you trying to help, though! 

sevillepower2020
Level 1

Supplier pays our warranty claim invoice with a credit. How do i post it?

I have the exact same question as you here.  Did you ever figure out a solution?

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