how do i stop QB from auto applying credits to my vendor payments?

Hi, Robin. Thanks for reaching out.

This behavior is caused by a setting called Automatically apply credits in your Account and Settings. When enabled, QuickBooks applies any open credit to the next bill you create or pay, which can bypass the manual oversight required for accurate project costing.

To stop credits from being applied automatically in QuickBooks Online, here's how:
 

1. Click the Gear icon in the top right corner and select Account and settings.
2. Select the Advanced tab from the left-hand menu.
3. Look for the Automation section and click the Edit ✎ icon.
4. Toggle the switch for Automatically apply credits to Off.
5. Click Save and then select Done.

To protect your prior periods, note that changing this setting only affects future transactions. If credits have already been auto-applied to existing bills, you must open those specific bill payments and uncheck the credits to reallocate them.

Moving forward, any open vendor credits will be displayed in the Pay Bills window, allowing you to manually select which bill they should be applied to.

Need assistance with vendor transactions? Our QuickBooks Live Expert Assisted service provides the tips and guidance you need to streamline this process.

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