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lauxfeedyard
Level 2

Vendor sent a check. I need to apply it toward a credit memo. How do I do that?

 
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Best answer July 28, 2020

Best Answers
Rustler
Level 15

Vendor sent a check. I need to apply it toward a credit memo. How do I do that?

Deposit the check and use accounts payable/vendor name as the source account for the deposit

 

then use pay bills, select the "bill" the deposit created and apply the credit, save

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5 Comments 5
Rustler
Level 15

Vendor sent a check. I need to apply it toward a credit memo. How do I do that?

Deposit the check and use accounts payable/vendor name as the source account for the deposit

 

then use pay bills, select the "bill" the deposit created and apply the credit, save

lauxfeedyard
Level 2

Vendor sent a check. I need to apply it toward a credit memo. How do I do that?

Thank You!

I used 'Accounts Payable' for the account type, and it cleared it right up! Sure appreciate your help!

DawnZ
Level 1

Vendor sent a check. I need to apply it toward a credit memo. How do I do that?

Rustler,

This worked perfectly with the Accounts Payable account used in the deposit.  Thank you.

timleasley
Level 2

Vendor sent a check. I need to apply it toward a credit memo. How do I do that?

This is the wrong way to do it. This method leaves a plus and minus in the AP. When you run a AP report it shows a balance in the 1-30 day and then a negative amount in the 30-60 column. Then they stay on there forever with the plus and minus.

 

The actual question here is how do you tell QBO that you overpaid an invoice and the Vendor sent you a check for that amount, and now you are depositing that check?

Rainflurry
Level 12

Vendor sent a check. I need to apply it toward a credit memo. How do I do that?

@timleasley 

 

"This is the wrong way to do it. This method leaves a plus and minus in the AP."

 

Actually, it doesn't.  Re-read the post from Rustler.  After assigning A/P to the deposit, you need to go to Pay Bills and clear the credit memo (debit) against the deposit (credit).  That will remove them (the plus and minus) from your A/P Aging reports.  The same process works in QBO.  The overpayment creates a vendor credit and the deposit from the vendor check offsets that.  Clear them against each other in Pay Bills and you're all set.  

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