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Depositing a Credit from a Vendor

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We have a vendor that requires payment at time of purchase and the total comes out of the bank account. Those items went into inventory. A month later the items had to be returned so I had to do a credit to take the items out of inventory. The vendor deposited the money back into the bank.

Now I have a credit that I don't know how to apply as a deposit into our QB's checkbook so I can reconcile.

How would I do this?

Thanks

QuickBooks Desktop

G

GlinetteCAnswer

Question -

Why am I doing Accounts Payable? I'm receiving the credit from the vendor who did a direct deposit into our bank account. If I do Payable, then this will just show a 0 and not be a deposit into the bank and I can't reconcile the deposit with my bank statement.

It's nice to have you back here, AZEmbroiderer.

Let me give you additional details about your concern.

We're doing Accounts Payable to affect the Vendor's accounts and show the available credits in the Pay Bills page. When you reconcile, the deposit will show in your bank. I'll show you how:

From the Banking menu, select Reconcile.
In the Begin Reconcile window, select your Account the amount deposited to.
Click Continue.
Locate the deposit amount.
Click Reconcile Now.

If in case you'll encounter issues reconciling your account, please refer to this article: Fix issues when you're reconciling in QuickBooks Desktop.

Feel free to comment below if you need anything else.

R

ReymondO

Let me help you in depositing the credit to your bank, @AZEmbroiderer.

We can simply create a deposit to zero out your credit. Here's how:

Go to Banking and select Make Deposit.
Click the bank account you wanted to deposit to in the Deposit To drop-down.
Select the vendor in RECEIVED FROM drop-down.
Choose Accounts Payable in the FROM ACCOUNT drop-down.

You can also run the Vendor Balance Summary report to check your company's current balance with each vendor. Simply follow these steps below:

Go to Reports menu and select Vendors & Payables.
Click Vendor Balance Summary.

If you need further help in recording your transactions in QuickBooks, click the reply button below so I can provide you assistance.

AZEmbroidererAuthor

ReymondO

I think you didn't finish the steps.

After I've done the Vendor, Accounts Payable, Dollar Amount, Save/Close, how do I apply the credit? Does this apply the credit toward the deposit? Does this just 0 it out? Is there another step that I need to do other than check to see what the balance is for that vendor?

Here's where it is confusing to me -

Normally, when I am paying an invoice, I can apply the credit toward that invoice. So I don't understand the difference between applying the credit to basically nothing and zeroing out.

I'm sorry, but I am flying by the seat of my pants when I have something new happen with a vendor/customer and am better with audio learning rather than visual. Thank you for being patient.