Level 2

CREDIT MEMO FROM MY VENDOR TO ME

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I have a credit memo to me from my vendor.  What do I do so that when I pay one or their next bills to me, I can then apply it and use it?

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QuickBooks Team

Payments

Hi @UNDERDOG2853,

 

Vendor credits are recorded when you receive refunds from your vendor.  It'll be my pleasure to help you record and apply your vendor credit to your vendor balance.

 

Vendor credits can be used to pay to next bills. But before applying the vendor credit, you'll first need to enter it in QuickBooks. Here's how:

  1. Click on the Plus (+) icon, choose Vendor Credit.
  2. Enter the vendor name.
  3. Enter the necessary information.
  4. Click on Save and Close.

Once done, you can now apply the vendor credit to your bill. You may follow these steps:

  1. Click on the Plus (+) icon, choose Expense or Check.
  2. Enter the vendor name.
  3. On the Add to Check/Expense section, select Add on the outstanding bill and vendor credit.
  4. Click on Save and Close.

I've attached an article that you may read in your free time: Manage Vendor Credits.

 

Don't hesitate to let me know if you have any other concerns. I'll be around to help.

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Level 2

Payments

That was simple enough. 

For some reason, when I saw vendor credit, my thought was that's not it, I'm not giving the vendor a credit, I am getting one from the vendor!

Chalk it up to being Monday!

Level 2

Payments

THANK YOU! :)

That was simple enough. 

For some reason, when I saw vendor credit, my thought was that's not it, I'm not giving the vendor a credit, I am getting one from the vendor!

Chalk it up to being Monday!

Level 1

Payments

Does not work if you do not have open invoices/bills from vendor.

Moderator

Payments

I'm glad you came here, Josh B.

 

You got it right. If you have received a credit from a Vendor and apply it to the Bill, you're unable to add a credit for a vendor without having an open bills.

 

If you received a refund from a vendor, you can also use a Vendor Credit. To achieve this, just make Bank deposit under Accounts Payable A/P to offset the credit and consider it as refund received from your vendor.

 

Here's how:

  1. Click the + New button and click Bank deposit.
  2. In the Add other funds to this deposit section, fill in the following fields: 
         Received from: Select or enter the vendor name.
         Account: Select the Account payable account.
         Amount: Enter the check amount.
  3. Select Save and Close.

Once done, you can link the deposit to vendor credit:

  1. Click the + New button and click Check.
  2. Select Choose a payee drop-down arrow, and click the vendor name.
  3. Provide the Check #DateAmount and Memo fields blank.
  4. From the Add to Check sections, select Add for the outstanding vendor credit and deposit.
  5. Hit Save and Close.

I've got this article about vendor credits and refunds for your reference.

 

Let me know if you have any follow-ups or other questions. I'm always here to help. Wishing you a good one.

Level 1

Payments

so with the basic qbo it doesn't allow me to enter credit from vendor.  How could i journal it since QBO doesn't have that service

Moderator

Payments

Vendor credit is unavailable in QuickBooks Simple Start, dm6310.

 

You can record this credit as bank deposit in QuickBooks. Here's how:

  1. Click the + New button on the left pane.
  2. and click Bank deposit.
  3. In the Add other funds to this deposit section, fill in the following fields: 
         Received from: Select or enter the vendor name.
         Account: Select the Account payable account.
         Amount: Enter the check amount.
  4. Select Save and Close.

I'll be here if you have additional questions.

Level 1

Payments

That does not work.  I have qbo basic, when i do what you say it takes me to the page to upgrade.  I don't want to upgrade, i just want to apply a vendor credit

Moderator

Payments

Hi, dm6310.

 

When a browser stored a lot of caches, it could cause problems like bringing up the data to your account or latency issue. As an initial step, you can press the F5 key on your keyboard to refresh the page.

 

If you're still getting the same result, we can do some of the basic troubleshooting steps. You can use these shortcut keys depending on the browser you're using:

 

  • Google Chrome: press Ctrl Shift N.
  • Mozilla Firefox: press Ctrl Shift P.
  • Internet Explorer: press Ctrl Shift P.
  • Safari: press Command Shift N.

If you're able to access the Bank Deposit section using the private browser, let's clear the browser's cache. However, if you wish to record this transaction via the journal entry, the assistance of an accountant is a must to help and guide on which account to debit and credit.

 

Here are additional references that might be helpful for future use:

 

I always got your back if there's anything else I can help you with. Take care.

Level 1

Payments

For the Simple Start plan, a bank deposit appears to be the correct route.  However, does the deposit going to accounts payable resolve the original expense? Doesn't that leave the original expense at its full amount?

QuickBooks Team

Payments

Hello, @sflaa1.

 

No, the deposit assigned as accounts payable will not fix the real amount of the expense. The accounts payable should be connected to an expense account for it to be deducted from the initial amount. If not, then it's just being deposited and will not affect the original amount.

 

You can create a journal entry to offset the amount of the original expense. Here's how to create a journal entry:

 

  1. Click the + New icon.
  2. Under Other, select Journal Entry.
  3. Select the liability account, where you deposited the payment and how much was the vendor credit.
  4. Fill out all the needed information.
  5. Hit Save and Close.

 

I suggest consulting your accountant as to which accounts should be selected to offset the original amount of the payment.

 

You can also refer to this article to understand more about the chart of accounts in QuickBooks Online: Understand the Chart of Accounts In QuickBooks Online.

 

Keep in touch with me if you have other questions. I'd be glad to assist you. Have a good day and you take care!

Level 1

Payments

I need the credit applied to my Credit Card account, but that doesn't show up as a "Bank Account".

QuickBooks Team

Payments

Hey there, @claw

 

Thanks for following the thread. 

 

To show the credit applied to a credit card account, follow the steps below. 

 

1. Click the +New button, then choose Credit Card Credit under the Vendors column. 

 

 

2. Under Choose a Payee, pick the correct company that gave you the credit/refund. 

3. In the Credit card account, you'll need to choose the credit card you wish to receive the credit on. 

4. Enter the date that the credit was applied to your card. 

5. Be sure to pick the same expense account that you charged the original purchase to under the Category selection. 

6. In the description field, you can type whatever you want. For example, credit for refund. 

7. Enter the Amount of the credit, then click Save and close

 

 

If you feel you have questions about what to do with the credit card credit, you can always reach out to your accountant as they know what's best for your business. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center

 

Let me know if you have additional questions or concerns. I'll be here to help you every step of the way. You can always reach out to us here in the Community anytime you need assistance. Take care and have a good one!