In QuickBooks Online, we can create a credit memo and apply it as payment to an invoice. You can check out this article for the detailed steps: Apply a Credit Memo, Credit or Refund to a Customer. We can enter it as Vendor Credit:Click the Create menu (+) and select Vendor Credit.Enter the vendor name and the credit details for the vendor. Make sure the amounts are positive.Click Save and close.Or you can use the Vendor Credit as payment for an open bill. Here's how you can apply it to the open bill:Open the bill you want to pay.Click the Make payment button.In the Bill Payment window, the bill is mark in the Outstanding Transactions section.Go to the Credits section and mark the vendor credit.Click Save and close.Feel free to browse this article for more information about vendor credits: Manage Vendor Credits. You can also get one-on-one help with accounting for your business:Check out QuickBooks Live. Let us know if you need anything else.

Solved

How do I apply a vendor credit to the amount owed to vendor?

Forum|Forum|7 years ago
October 16, 2018
19 replies
288 views

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QuickBooks Online

Best answer by JamesDuanT

In QuickBooks Online, we can create a credit memo and apply it as payment to an invoice. You can check out this article for the detailed steps: Apply a Credit Memo, Credit or Refund to a Customer.

We can enter it as Vendor Credit:

Click the Create menu (+) and select Vendor Credit.
Enter the vendor name and the credit details for the vendor. Make sure the amounts are positive.
Click Save and close.

Or you can use the Vendor Credit as payment for an open bill. Here's how you can apply it to the open bill:

Open the bill you want to pay.
Click the Make payment button.
In the Bill Payment window, the bill is mark in the Outstanding Transactions section.
Go to the Credits section and mark the vendor credit.
Click Save and close.

Feel free to browse this article for more information about vendor credits: Manage Vendor Credits.

You can also get one-on-one help with accounting for your business:
Check out QuickBooks Live.

Let us know if you need anything else.

Q

qoa

I go into the original invoice (if unpaid) and add a new line item to the invoice "RETURN" with the Credit Memo #, and enter the credit amount as a NEGATIVE item. It adjusts the total due on the invoice immediately. If the invoice is already paid, I suppose I could just enter the Credit as a NEGATIVE Bill.

J

JamesDuanT

Answer

QuickBooks Team

In QuickBooks Online, we can create a credit memo and apply it as payment to an invoice. You can check out this article for the detailed steps: Apply a Credit Memo, Credit or Refund to a Customer.

We can enter it as Vendor Credit:

Click the Create menu (+) and select Vendor Credit.
Enter the vendor name and the credit details for the vendor. Make sure the amounts are positive.
Click Save and close.

Or you can use the Vendor Credit as payment for an open bill. Here's how you can apply it to the open bill:

Open the bill you want to pay.
Click the Make payment button.
In the Bill Payment window, the bill is mark in the Outstanding Transactions section.
Go to the Credits section and mark the vendor credit.
Click Save and close.

Feel free to browse this article for more information about vendor credits: Manage Vendor Credits.

You can also get one-on-one help with accounting for your business:
Check out QuickBooks Live.

Let us know if you need anything else.

S

Steve99

How would I apply a credit to an overall amount do to a vendor? Meaning, we were invoiced a couple of months ago, so the invoice has already been paid, then made a return this month, so the original invoice has been paid, but we still need to take the credit?

Thank you in advance!

Steve

C

crusty

I have no idea where you started.

I am in vendors>pay bills. I have selected the vendor which has open invoices and a credit balance.

Now what?

K

KhimG

Level 7

Thanks for reaching out to us, @crusty.

The solutions shared by my colleagues are all different ways to link a vendor credit to a bill. In your situation, the steps you took are correct.

To apply the existing credit to an open vendor transaction, use the Pay Bill feature. Here’s how:

Go to the Plus icon and select Pay Bills.
Choose the vendor from the list.
Once selected, the vendor's existing credit populates on the Credit Applied column.
Hit Save and close to apply the credit to the vendor open balance.

Refer to this article for more information: Enter and pay bills.

That should do it. Let me know if you have any issues after following those steps. I’m always here to help. Have a good one!

A

AccountantJr

Using Quickbooks online, and we have dozens of bills to pay to each vendor with dozens of credits....many that need to be edited when the final statement comes in. Using the "Pay Bills" option does not let us see the credits that are being applied (since it only populates amounts), and going through the "Make A Payment" option on the Vendor screen does not allow us to pop back and forth while editing the payment amount and the vendor credit amounts.

Please help us make this more like the traditional Quickbooks desktop version. It is taking hours to pay bills!!

F

FHGC

Hi There,

Is this for QB online because I don't have a plus sign on desktop.

Thank you,

Stacy

BettyJaneB

Level 9

Glad to have you here, @FHGC.

Yes, the answers given by my colleagues above are for QuickBooks Online. I can definitely share with you the steps on how to apply vendor credits to a bill in QuickBooks Desktop.

Applying credits to a bill can be done in just a few clicks:

Click on Vendors at the top menu bar.
Select on Pay Bills.
Choose the bill that you wish to be paid.
Click the Set Credits button at the bottom to apply credits.
Once done, click on Pay Selected Bills.

Please check out the screenshots below to outline the steps:

You may also read through these following links for more insights about handling credits:

If you need further assistance with this process, feel free to get in touch with our Customer Care Team. They have extra tools that can walk you through the steps.

Be sure to let me know if you have any other questions about paying bills. I got you covered with any QuickBooks concern. Thanks for coming to the Community, wishing you continued success.

F

FHGC

Thank you so very much!

A

acaballero

Hi Is there a way to credit a vendor credit??

Kristine Mae

Moderator

It looks like you're trying to change the vendor credit's amount, Acaballero.

You'll just have to open the transaction, change the figure, then save it. This way, you can credit an amount in the vendor credit. I'll guide you with the steps:

Click Expenses, then go to the Vendors tab.
Select the vendor to open their profile.
Look for the Vendor credit, then click View/Edit.
Change the amount, then click Save and close.

I'll include a screenshot to guide you.

Let me add the article about entering a credit from a vendor.

Tag me if you need more help. I'll personally reply to you as soon as I can.

A

acaballero

I am so sorry, I mean to put is there a way to Apply a credit to an Expense (not a bill), but still for the vendor.

B

Babraham

Along these same lines, what if I have more credits than the bill amount? How do I apply credits to the bill to relieve the payable without writing a check? It looks like QBO will not let me write a $0 check or $0 bill payment.

Thanks!!!

J

Joseph_A

I'm here to help you with your concern today, @Babraham.

If you have more credit then you can simply apply it to the bill and the remaining amount of credit can still be applied to the next payment.

Here's how to apply a credit to the bill:

On the left navigation pane, Go to Expenses then Vendors.
Select the Vendor, you can see all the bills associated with the vendor.
Choose the open bill them click on Make payment.
On the Bill payment page, You can see the Bill and the Unapplied payment, make sure it has a check on the checkbox.
Once done, click Save and Close.

You may also want to learn how to run a report with vendor totals: Run a report with vendor totals.

Feel free to drop a comment if you have additional questions, I'll be glad to assist you.

B

Babraham

Thank you for the response, however, if the net affect is $0, it will not let me save. I have $6000 is credits, and a $5000 bill. It will not let me apply credits to the bill if the net is $0. I get the error above.

F

FabianaT

When doing this, gives me an error "You must set a transaction amount". But the bill and the credit total is zero.

Pabz_L

Hello, @FabianaT.

If you’re trying to apply vendor credits to a bill, you should put a transaction amount on the bill payment so there will be no error message.

You can refer to the screenshot above.

To apply a credit to a bill, you can follow the steps below.

Select + New.
Select Pay bills or Pay bill.
Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
Complete the rest of the fields.

Please also check this article for your future reference if you wanted to learn how to record a refund from a vendor in QuickBooks Online. Enter a refund.

Leave a comment below if you have any other questions. Keep safe.

J

JRHAvion

Hello Quicken,

I am trying to apply a vendor credit however the system takes me to online bill pay - it is a manual entry - how do I apply the credit against the bill? Thanks!

M

MadelynC

Moderator

This information will get you moving, @JRHAvion.

Entering the credit depends on how you record the purchases. If you’re using QuickBooks Online, you can follow my colleague steps provided above to do it.

You can apply that credit manually in the Credit Applied column in Online Bill Pay. All vendor credit created within QuickBooks and the incoming bills are eligible to be used toward bills on the Pay Bills Online page.

Once done, you can pull up the Transaction List by Vendor report to see the vendor's payment, bill, and the credits applied. Let me show you how:

Go to the Reports menu.
Enter/select Transaction List by Vendor.
Click on the Customize button.
Select the necessary details, then press Run report.

I have an article here that can help you learn more about recording a credit from a vendor.

Otherwise, you’ll want to contact the Quicken Support team to assist you further with this matter. They’ll be able to guide you on how this transaction settled.

I’ve added this link that tackles expenses and vendors in QuickBooks. This will give you more details about your business and your cash flow through proper bookkeeping practices.

The Community team is always here to find a solution. Just leave us a message below, and I’m sure it will be taken care of.

P

PinotJim

product may have change, but I cannot find anything like the Plus mentioned below

I'd be happy to assist you.

Here's how you can pay your bills using your vendor credit:

Click on the Plus sign (+) icon, then choose Check.
Select the vendor.
Under Add to Check, add the Bill and Vendor Credit.
Click Save and close.

I have attached a screenshot for your reference. nor can I find any screen shot to reference. When I pay the vendor bills, the CM does not show up in the list of invoice to be paid. I am using ProPlus2021

S

SarahannC

Level 9

Hello there, PinotJim.

The steps you've shared above are applicable for QuickBooks Online. Since you're using QuickBooks Pro Plus 2021, below are the steps o follow. You can pay your vendor bills using the Pay Bills feature in QuickBooks.

Go to the Vendors menu.
Select Pay Bills.
From the table, select the check-boxes of the bills you want to pay. If you want to set any discount or credit to the bills, you can utilize the Discount or Credit button.
Enter the date you paid the bill and select the payment method.
Select Pay Selected Bills.
Then, Done.

For more details, you can check this article: Learn how to pay your bills in QuickBooks Desktop for Windows. Also, you can run the Transaction List by Vendor report to view the transaction and activities made to your vendor.

Feel free to check the articles below to learn more about customizing and memorizing report in QuickBooks:

Let me know if you have other questions or need further assistance. Take care and stay safe.

1

12345678905

Hello. I am using QB On line, I am trying to pay a bill using a credit vendor. I entered the invoices and credits vendor. I go to Pay Bills, then select the vendor, then select the invoices; and even if I add the credit, or edit the total amount, when I schedule the payment, it gives me the total amount not considering the credit or the amount I entered to pay. In all cases, it gives me the total amount for the invoices selected, even if it is only one invice with one credit, when I schedule the payment, it is not consider the credit or the payment I entered manually. It schedule the total amount of the invoices.

Can you help me?

R

RadiantE

eHi,

I'm trying to apply a vendor credit to a bill and schedule payment online. I created the vendor credit and bill, when i select the bill($1624.97) and enter the credit($16.59) it shows payment $1,608.38, which is correct. But when i click "Schedule Payment online" and go through steps it says its going to make a payment for the original invoice $1,624.97 without the credit.Why is it not showing $1608.38 as payment online

MariaSoledadG

QuickBooks Team

Let's find out why it is showing the original invoice amount when creating the scheduled payment, RadiantE.

Are you trying to create an automatic recurring payment to a vendor? If so, you can create a separate transaction for your scheduled payment so it would automatically apply the correct amount. To do this, you can follow the steps below:

On the check window, select Memorize (or press Ctrl+M).
Choose the reminder option.
In the "How Often" field, choose the frequency (monthly, weekly, daily, etc).
In the "Next Date" field, choose the date of the next payment.
In the "Number Remaining" field, enter the number of payments you wish the program to enter.
In the "Days In Advance To Enter" field, enter how many days in advance you want the program to record the transaction or remind you to enter. Choose 0 if you want it to post on the day of choice.
To memorize the transaction, select OK. This should bring you back to the "Write Checks" window.
If the check is auto-pay, uncheck Print Later.
Note: If the check is marked as to be printed later, it will appear in the Print Check queue on the day it is recorded.
(Optional) For auto-pay, change the check number to Autopayment or Epay.
Click Save & Close.

Please read this article for more information and detailed steps: Create An Automatic Recurring Payment (check) to a Vendor.

You'll want to run a report for your vendors to find out how much is overdue.

Let me know if you need anything else about vendor transactions. As always, we're here to help you.

R

RadiantE

Hi,

No this isn't a reoccurring payment. Its a new Invoice that needs to be paid less the credit issued from the vendor. I'm paying online by scheduling an ACH within 2 days. The vendor account reflects the open Due Amount with the credit applied but when issuing payment it says it's paying full amount without the credit deducted.

P

pmpruneda

So how do I take the credit in desk top? I really wish desk top and On line was more alike so a user would know who to use both.

C

Catherine_B

Level 9

Hello there, pmpruneda.

I can help you create vendor refunds and soon apply them to your bills.

My colleagues shared the way on how to record credit in QuickBooks Online and Desktop. For QuickBooks Desktop, we have different situations to consider before recording a credit. You'll want to check out this article that will help you identify which scenario you're in and the steps on how to record a refund/credit: Record a vendor refund in QuickBooks Desktop.

In case you need to keep track of all the transactions you created for your vendors, you can run and customize reports. I'm also attaching this link that will help you in recording your payables: Accounts Payable workflows.

I'm just here if you have other questions about your vendor transactions. I'll be more happy to help!.

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