Entering a vendor credit

Hello there, YaYa2. You'll need to use the Items tab on the credit when entering inventory-related credits in QuickBooks Desktop (QBDT).

To start, may I know the exact prompt you encountered when applying the account to which the bill was assigned? Any screenshot would be appreciated.

When entering vendor credits for inventory in QuickBooks Desktop Enterprise, ensure to use the Items tab rather than the Expenses to ensure proper adjustments to inventory and the cost of goods sold. The reason QuickBooks won't let you assign the credit directly to certain accounts is that inventory-related transactions are managed through the setup of items and their linked accounts. The software expects these transactions to go through the item settings to properly track quantities and values, which is why it prevents direct account postings for inventory items.

Feel free to check the reference image below for additional guidance.

If the vendor credit is for regular expenses and not linked to inventory items, you can use the Expenses tab instead. For accuracy, I recommend consulting your accountant to confirm the correct account to use.

To know more about recording bill credit, you can visit this article: Vendor credits and refund in QuickBooks Desktop.

Come back to this post if you have other questions or concerns.