I've got the procedures so you can record a credit memo and apply it to your vendor's invoice, Pinky.
Do you mean your vendor recorded a Vendor credit (money you owe them) and has used it to pay their invoice? If so, you can create a Credit memo for them and then apply it to their invoice using the Receive payment feature. This allows you to reduce or clear off their balance using the credit amount.
Here's how:
- Go to the + New menu, then Credit memo.
- Choose your Customer and enter the Credit Memo Date.
- Enter the Service Date, Product/Service, and Quantity.
- Double-check the accuracy of the Rate and Amount.
- Once done, hit Save and close.
After that, link the Credit memo to the invoice:
- Go back to the + New menu, then Receive payment.
- Choose the appropriate Customer.
- Select the invoice from the Outstanding Transactions section and the credit memo from the Credits portion.
- Double-check everything, and once done, hit Save and close.
However, if you mean directly linking a vendor credit to an invoice, this is not an option in QBO. Customer and vendor credits are tracked separately for financial accuracy. You can check with an accounting professional to help you handle this matter accordingly.
You can also review this article to guide you through processing exchange products or services between you and your vendor: Record a barter transaction.
Additionally, you may run and customize your reports to check your company's profitability and upcoming expenses. This way, you can track your business's cash flow accordingly.
Finally, you can also explore our QuickBooks Live Bookkeeping offering, which can help you manage your accounting needs. Our dedicated experts are ready to assist in tracking your record's preciseness so you can run your business confidently.
If you have more questions about handling customer credits in QBO, hit the Reply button. We are always here to help.
