Question

How do you issue a credit to expense account?

Forum|Forum|5 years ago
August 12, 2021
9 replies
88 views

Amazon creates provisions which are initially added as expenses, and then they reverse these provisions later on. I would like to issue a credit to my expenses, and tried creating a negative expense, however, when doing that, it tells me to enter an amount greater than zero.

Is there any way around this?

QuickBooks Online

M

Mark_R

Moderator

Your confusion ends here, @quickbooks6.

Allow me to fill you in on everything you need to know about applying credit to an expense account.

In QuickBooks Online (QBO), you can only apply vendor credits to the transactions affecting the Accounts Receivable account (A/P), like bills. As a workaround, you can consider adding the credit as another line to your expense transaction. Here's how:

Locate and open the expense transaction.
In the Category section, add the credit as another line.
Enter a negative amount.
Click Save and close.

By doing this, it'll offset the balance of the expense account. However, I still encourage seeking help from your accountant for more guidance. If you don't have an accountant, you can find one using this link.

Just in case you want to get a report on all money paid to a vendor for the year, you can run and customize the Transaction List by Date report. For the detailed steps and information, feel free to check out this article: Run a report with vendor totals.

I'm still open to your replies if you have additional questions about applying vendor credits in QuickBooks Online. Have a great day ahead!

Q

quickbooks6Author

It does not allow me to do this. This is the message I get:

Something's not quite right

You must specify a transaction amount that is 0 or greater.

LieraMarie_A

Level 8

Hi there, @quickbooks6. Allow me to add some clarifications to get this straightened out.

You'll have to open the expense that you created for the provisions. On the second line, add the same account and enter the amount as negative.

Here's how:

Go to the Expenses menu and select the Expenses tab.
Locate and open the transaction.
In the Category section, add a new line and select the account
Enter a negative amount.
Ensure that the total amount is 0 or greater.
Click Save and close.

Doing this will offset the balance of the expense account. I'd still recommend seeking professional advice from your accountant about this. They can help you properly handle this type of scenario. You can also reverse a transaction using a journal entry.

We've always got your back if you need further assistance in managing your expenses. I look forward to being able to help you again in the future. Have a wonderful day.

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