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S
s_reynolds
February 28, 2023
Question

Applying supplier credit to another supplier.

  • February 28, 2023
  • 1 reply
  • 0 views

I know, this does not look right, but I have a strange situation here and QBO support was unable to assist and I am hoping that we are not unique.  Here is what we are dealing with.

 

We are part of a buying group. Essentially, this means that we have several suppliers who are paid by one supplier. 

 

Part of the workaround is to set up the Supplier who pays as a credit card. NOT ideal.  Suggestion has been made to QBO but I need to find a workaround to deal with Supplier Credits.

 

We pay weekly and the following scenario is common:

 

Bill 1 from Supplier A $100
Bill 2 from Supplier B $400
Supplier Credit from Supplier B $50
Supplier Credit from Supplier C $100

As long as the supplier credits are for one of the suppliers who have a big enough bill being paid, no problem, however that usually does not happen and the credit needs to be applied against another supplier's bill.

 

Has anyone had to find a solution to this sort of situation?

1 reply

S
s_reynoldsAuthor
February 28, 2023

I found a solution.  May not be the best option, but it works.

 

  1. I set up a clearing account in the chart of of accounts.
  2. Open the supplier credit I want to move to another supplier and enter the amount as a negative on the second line using the clearing account in the category field
  3. Save & Close
  4. Open the supplier account I am moving the credit to
  5. Select new transaction Supplier Credit
  6. Enter the clearing account as the category and enter the amount as a positive amount
  7. Save and close.

This leaves me with a supplier credit I can use as necessary.  Not pretty but it appears to work.

S
s_reynoldsAuthor
February 28, 2023

After thinking about it a little more, I think my original solution should be altered slightly.

  1. I set up a clearing account in the chart of of accounts.
  2. Enter a bill using the clearing account as the category
  3. Save & Close
  4. "Pay" the bill with the original Supplier Credit
  5. Save & Close
  6. Open the supplier account I am moving the credit to
  7. Select new transaction Supplier Credit
  8. Enter the clearing account as the category and enter the amount as a positive amount
  9. Save and close.

 

This would have the advantage of showing the date that credit was transferred (the payment date).

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