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Leonn
November 16, 2019
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How to issue a debit note against a vendor?

  • November 16, 2019
  • 1 reply
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Dear Fellows

I bought from a vendor  USD 10.000, he shipped  10.000 and I paid  10.000.

When product arrived was off specs and generate  USD 1000 expense to be in good order (re bag damaged bags).

I presented a claim for Vendor and wer agreed to settle this ammount on the next purchase.

How do I issue a debit note against this vendor for this ammount? Or express this im my accounting system?

Thxs in advance for any help

Best answer by AlcaeusF

Thanks for reaching out to the Community, @Leonn.

 

Based on the information provided, you can create a debit memo (vendor or bill credit) to record the expense, and apply it to the next bill payment. This way, the expense you incur from the previous transaction will be deducted on the future one.

 

Here's how:

 

  1. In your QuickBooks Desktop (QBDT), go to the Vendors menu at the to get to the Enter Bills.
  2. Choose the Credit radio button, then pick the vendor's name.
  3. Now, proceed to the Expense tab and select an account.
  4. Enter the amount (USD 1000) in the Amount column.
  5. Hit Save and close. 

 

After that, apply the credit by the time you pay the next bill. Here's how:

 

  1. Go back to the Vendors menu to get to the Pay Bills.
  2. Place a checkmark on the transaction.
  3. Click the Set Credits option at the bottom. 
  4. Ensure that the credit is checked in the Discount and Credits window.
  5. Hit Done and Pay Selected Bills. 

 

Just in case, I'll be adding this article for future reference: Record a vendor refund in QuickBooks Desktop.

 

Please let me know if you have any other issues, and I'll get back to you right away. I'm more than happy to assist. Have a great weekend!

1 reply

AlcaeusF
AlcaeusFAnswer
November 17, 2019

Thanks for reaching out to the Community, @Leonn.

 

Based on the information provided, you can create a debit memo (vendor or bill credit) to record the expense, and apply it to the next bill payment. This way, the expense you incur from the previous transaction will be deducted on the future one.

 

Here's how:

 

  1. In your QuickBooks Desktop (QBDT), go to the Vendors menu at the to get to the Enter Bills.
  2. Choose the Credit radio button, then pick the vendor's name.
  3. Now, proceed to the Expense tab and select an account.
  4. Enter the amount (USD 1000) in the Amount column.
  5. Hit Save and close. 

 

After that, apply the credit by the time you pay the next bill. Here's how:

 

  1. Go back to the Vendors menu to get to the Pay Bills.
  2. Place a checkmark on the transaction.
  3. Click the Set Credits option at the bottom. 
  4. Ensure that the credit is checked in the Discount and Credits window.
  5. Hit Done and Pay Selected Bills. 

 

Just in case, I'll be adding this article for future reference: Record a vendor refund in QuickBooks Desktop.

 

Please let me know if you have any other issues, and I'll get back to you right away. I'm more than happy to assist. Have a great weekend!

L
LeonnAuthor
November 17, 2019

Dear FritzF

Many thanks for your prompt reply.

It worked well!

This lead me to another question in the same topic since I have a vendor that is also somtimes my customer for otther products, I had to creat a vendor and a customer that each one has the transactions but I cannot use my sale to him as payment to some purchase aI made from them...

Any suggestion?

Best regards

Leonn

 

katherinejoyceO
katherinejoyceO
November 17, 2019

Thanks for your swift response, @Leonn. To do this, you can use a clearing account to move money from one account to another. This is also called a barter or wash account. Here's how to set it up: 

 

  1. Select Chart of Accounts from the Lists menu.
  2. Right-click anywhere in the Chart of Accounts, then select New.
  3. Select the Bank radio button. I'd suggest using a bank account because of the following reasons:
  • You can pay into a bank account via Receive Payments or Make Deposits.
  • You can payout of a bank account via Write Checks or Pay Bills.
  • A bank account appears on the balance sheet and on the statement of cash flows to balances and changes in balances.
  • To allocate expenses to overhead or class using a zero check, you must use a bank account as your Clearing account.

      4. Select Continue.
      5. Enter Clearing Account, Barter Account or Wash Account in the      Account Name field.
      6. Leave the opening balance blank.
      7. Click Save & Close.

 

To use a clearing account, you can create a journal to move money between accounts, then link the Journal Entries together as you enter bills or receive payments. for more information, check out this help article: Set up a clearing account. 

 

To make sure your books are accurate, I'd suggest you refer to your accountant for the proper posting of your transactions. 

 

Feel free to message us again if you have more questions. We're always here to help. 

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