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Enter a credit from a vendor

Learn how to record a credit from a vendor in QuickBooks Online.

Just got credit for a business expense? If you got money back, you should enter a refund instead. If you got a credit to use on a future purchase, use this article.

How you enter the credit depends on how you record your purchases. Choose the section below that applies to you. If you’re not sure, ask your accountant. Or, we can help you find an accountant.

Use these steps if you enter bills to track your expenses. This makes sure the credit hits the expense account you use for this vendor.

Create a vendor credit

  1. Go to the Create icon and select Vendor Credit.
  2. In the Vendor drop-down menu, select your vendor.
  3. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
  4. Select Save and close.

Apply vendor credits to a bill

You can apply a vendor credit toward any open or future bill. When you’re ready to use the credit, here’s how to do it.

  1. Go to the Create icon and select Pay Bills.
  2. Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
  3. Complete the rest of the fields like you normally do.

To track credits for your vendors, you should consider entering bills in QuickBooks. This way you can track your account balance and credits using Accounts Payable. Otherwise, you can enter a note to remind yourself about this credit in the future.

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