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scw23
November 13, 2025
Solved

Vendor ACHd more than the amount of the bill

  • November 13, 2025
  • 1 reply
  • 24 views

Good evening,

 

We have automatic payment set up to pay our business telephone bill and the phone company ACHs the amount of our monthly bill from our checking account. We record this transaction and pay this bill through Bill Pay. Last month, the phone company incorrectly withdrew an additional $37.41. I tried paying the bill through Bill Pay and creating a credit memo to be used on our next bill, but my totals are off when I reconcile the bank account. Is there another way to pay the bill in QuickBooks Desktop besides Bill Pay, so I can show that we paid more than the amount on the invoice and a credit will automatically be applied to the account?

 

Thank you.

Best answer by Rusimyhr

Hi there, @scw23.

 

You’re already on the right track. However, since you mentioned your totals are off during reconciliation, it's due to the credit memo you created. QuickBooks automatically generates a vendor credit when an overpayment is recorded, and adding a credit memo can result in duplicate credits. 

 

To fix this, you'll need to delete the manually created credit memo. QuickBooks automatically tracks overpayments during the bill payment process.

 

Next, follow these steps to record the payment properly:

 

  1. Go to Vendors, click Pay Bills.
  2. Select the bill.
  3. Ensure the Payment Method is set to Check or Credit Card.                              
  4. Click Pay Selected Bills to save the payment.

Your bank register now shows the withdrawal amount.

 

QuickBooks will apply the payment to the bill and automatically create a vendor credit for the overpayment amount. This credit will be stored in the vendor's profile for future use.                  

 

When the next bill arrives, you can use Pay Bills, and QuickBooks will prompt you to apply the $37.41 credit automatically.

 

This process ensures your reconciliation is accurate, and the credit is ready for future use. Let me know if you have any other questions.

1 reply

R
RusimyhrQuickBooks TeamAnswer
QuickBooks Team
November 13, 2025

Hi there, @scw23.

 

You’re already on the right track. However, since you mentioned your totals are off during reconciliation, it's due to the credit memo you created. QuickBooks automatically generates a vendor credit when an overpayment is recorded, and adding a credit memo can result in duplicate credits. 

 

To fix this, you'll need to delete the manually created credit memo. QuickBooks automatically tracks overpayments during the bill payment process.

 

Next, follow these steps to record the payment properly:

 

  1. Go to Vendors, click Pay Bills.
  2. Select the bill.
  3. Ensure the Payment Method is set to Check or Credit Card.                              
  4. Click Pay Selected Bills to save the payment.

Your bank register now shows the withdrawal amount.

 

QuickBooks will apply the payment to the bill and automatically create a vendor credit for the overpayment amount. This credit will be stored in the vendor's profile for future use.                  

 

When the next bill arrives, you can use Pay Bills, and QuickBooks will prompt you to apply the $37.41 credit automatically.

 

This process ensures your reconciliation is accurate, and the credit is ready for future use. Let me know if you have any other questions.

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