Hello and thank you for your suggestion.
However it does not seem to work for me. I am using Quickbooks online and when I do bill payment I have the vendor credit available to select but not the credit card credit.
Also, as I think about it some more I think that perhaps it would not be appropriate from an accounting perspective to apply a credit card credit against a vendor credit as this would in effect be crediting the same account twice - correct?
So let me restate the problem and suggest what I think I need to do and then I would love to hear from others how you handle it.
Let's say I purchase $200 worth of inventory from a vendor, and pay using my credit card
I then decide to return $40 worth of goods and create a credit memo for $40.
However the vendor issues a credit card refund for the $40.
So now I need to process the refund from the vendor as a credit card credit.
What do I do with the credit memo?
Do I just delete the credit memo once I receive the refund?
If the credit memo was created in a prior period should I enter a bill to offset the credit memo?
I would love your input. This is a scenario that occurs not infrequently for my client. Thank you