Let me clarify why they use the credit card credit feature, Jill. Below are the details to help you understand the process.
Are you referring to the steps provided above? If so, the workaround that was performed is intended for the scenario that was shared by the original post.
Since they want to apply the credit card credits to the bill (already overpaid), they have to select an Accounts Payable account to clear the vendor balance. Using this account will create a vendor payable balance (equivalent to a bill) that can offset the overpayment. Then, link them by using Pay bills. Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your vendor expenses accurate.
Moreover, there are other ways to manage and record a refund or credit from a vendor in QuickBooks. You can check the link for more detailed instructions: Enter vendor credits and refunds in QuickBooks Online.
In addition, we have QuickBooks Live Expert Assisted that is always available to help you with best practices in setting up and making the most out of QuickBooks Online.
If you need to run reports specifically for your credit card accounts, QuickBooks Online offers the Transaction Detail by Account report. This report breaks down each transaction made in each account you've set up within your QBO account.
We look forward to hearing back from you. Please keep in mind that we're always here to assist you with any questions or concerns about applying for credit card credit or other transactions. Keep safe always.
