Enter a vendor credit

Creating vendor credits in QuickBooks Online helps maintain accurate records of your financial transactions and ensures that your accounts payable balance reflects the correct amount owed to each vendor,  -jdwesternelectr. I'm here to lay out the steps for you.

1. Go to + New and choose Vendor Credit.
2. In the Vendor dropdown, select your vendor.
3. Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting credit for.
4. If you choose an inventory item, QuickBooks will put it back into inventory. If the item is defective or if you don’t want it added back to inventory, you can make an inventory adjustment.
5. Click Save and Close. 

You can check this article for more information on how to apply that credit to your future bills: Enter vendor credits and refunds in QuickBooks Online.

Additionally, you can check out this article if you need to handle prior balances for a customer who owes you money and needs to pay in QBO: Manage outstanding balances for customers and suppliers in QuickBooks Online.

If you have any further inquiries regarding your vendor credits or any other entries, please feel free to inform me by leaving a comment below. I am more than willing to assist you once again. Have a great day.