Applying for vendor credits in QuickBooks Online can simplify your expense management and improve the accuracy of your financial records. Vendor credits allow businesses to adjust or offset outstanding bills, making tracking of returns, refunds, or overpayments from suppliers easier.
This blog will walk you through applying for vendor credits in QuickBooks Online.
Go to + New, select Vendor Credit, and choose the vendor.
Enter credit details (Account, Amount), then Save and close.
Open Expenses > Vendors, and find the bill to apply the credit.
Open the bill, click Make Payment, and select the vendor credit.
Confirm the payment amount, then Save and close.
To apply vendor credit in QuickBooks Online, the first step is to create a new vendor credit.
Log into QuickBooks Online and click the + New menu on the left side of the screen. This menu lets you create various transactions, including vendor credits.
From the dropdown list, select Vendor Credit. This option lets you create a record of the credit from a vendor, which could be due to a return, a refund, or an overpayment.
In the Vendor dropdown menu, select the vendor who issued the credit. Ensure you select the correct vendor, and the credit will be applied accurately to their account.
Fill in the Account field with the appropriate expense or liability account to which this credit applies. Next, enter the amount of the credit as shown on the vendor’s statement or invoice. You can also add details like a Memo or Description to keep clear records.
Once you’ve entered all the details, click Save and close to save the credit. QuickBooks will store the vendor credit, making it available for future transactions or bills from that vendor.
Now, you’ll apply the saved vendor credit to an existing bill. Go to the Expenses menu on the left panel, then choose Vendors. This will open a list of all your vendors and their related transactions.
Search for the vendor you just created a credit for. To apply vendor credit, open the outstanding bill by clicking on it to view its details.
With the bill open, click Make Payment at the top of the screen. This action opens a new window to apply vendor credit to the selected bill.
In the payment window, locate the Outstanding Transactions section and ensure the bill you want to pay is selected. Next, scroll down to the Credits section. Here, you’ll see the vendor credit you created earlier. Check the box next to the credit to apply it to the bill, reducing the amount owed by the credit amount.
Before saving, double-check the Payment amount field to ensure it reflects the correct balance after the credit has been applied. Once everything looks accurate, click Save and close to finalize the transaction.
Applying vendor credits in QuickBooks Online is straightforward yet essential to managing vendor relationships and ensuring accurate financial records. Following the steps mentioned in the blog can effectively offset bills, track vendor credits, and maintain clean, up-to-date books.
Regularly applying vendor credits improves expense management and enhances accounting accuracy. This process will equip you to handle vendor refunds, returns, and adjustments, keeping your business finances balanced and organized.
A vendor credit in QuickBooks Online is a transaction that records refunds or returns from a vendor. It helps you offset outstanding bills and keep accurate expense records.
Go to + New > Vendor Credit, select the vendor, enter the Account and Amount, and click Save and Close.
Yes, when paying a bill, you can select multiple vendor credits in the Credits section to apply them all at once to reduce the bill amount.
Ensure the vendor credit is assigned to the same vendor as the bill. If the vendor doesn’t match, QuickBooks won’t display the credit for that bill.
After applying the credit, review the Payment amount on the bill. The amount should reflect the total owed after subtracting the applied credit.