Thank you for your prompt response, Piperppp.

If you have received a credit from a vendor (for example, due to an overpayment or a returned item) this should be recorded as a credit in QuickBooks. To do this, choose the Credit option on the Vendors menu. I'd gladly provide detailed steps to guide you through this process.

To enter or record a received bill in QuickBooks Enterprise (QBES) using a supplier’s credit, follow these steps below:

Enter the Bill:

1. Open QuickBooks Enterprise and go to the Vendors menu.
2. Select Enter Bills.
3. In the Enter Bills window:
   • Vendor: Choose the vendor from whom you received the bill.
   • Date: Enter the date of the bill.
   • Amount: Enter the total amount of the bill.
   • Bill No.: Enter the bill number for reference.
   • Expenses/Items: Allocate the bill amount to the appropriate expense accounts or items.
4. Click Save & Close to record the bill.

Enter the Supplier’s Credit:

1. Go back to the Vendors menu and select Enter Bills again.
2. In the Enter Bills window, tick the Credit radio button at the top.
3. Fill in the details:
   • Vendor: Choose the same vendor.
   • Date: Enter the date of the credit.
   • Amount: Enter the credit amount.
   • Expenses/Items: Allocate the credit amount to the appropriate accounts or items.
4. Click Save & Close to record the credit.

Apply the Credit to the Bill:

1. Go to the Vendors menu and select Pay Bills.
2. In the Pay Bills window:
   • Select the Bill: Check the box next to the bill you want to pay.
   • Set Credits: Click on the Set Credits button at the bottom.
3. In the Apply Credits window:
   • Select the Credit: Check the box next to the credit you want to apply.
   • Click Done.
4. Verify that the credit has been applied correctly in the Pay Bills window.
5. Click Pay Selected Bills to complete the process.

These steps will ensure that the supplier’s credit is properly applied to the received bill in QBES.

Moreover, always review your transactions to ensure everything is recorded correctly, and use QuickBooks reports to verify that the bill and credit have been applied properly.

You may also find this article helpful for additional information on customizing the reports based on your business needs in QuickBooks: Customize vendor reports.

Please tag my name in your reply on the Community forum for further inquiries about managing vendor bills-related concerns in QuickBooks Enterprise. I'm more than willing to assist you further. Have a pleasant day!