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allen25glenn
July 31, 2022
Solved

Vendor Credit

  • July 31, 2022
  • 1 reply
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Hi, how to account a Store Credit from a refund of a materials purchase?   I have doubt on what I was doing with it.  I made a vendor credit and charged it to Petty Cash account. Because I thought that when there is a new purchase soon, I will just make a Bill for that purchase and then when Pay Bills, I'll just add the Vendor Credit from Petty Cash?  Did I make sense or Am i incorrect?

Best answer by MichelleBh

You're on the right track in recording your vendor credit, @allen25glenn. Good job on that!

 

Thanks for conveying the complete scenario. I'll share additional information about handling Petty Cash in QuickBooks Online. This way, I can guide you accordingly. 

 

The credit will be transferred directly to that account if you pay the bill with a Petty Cash account. That said, you don't need to add the vendor credit from Petty Cash. 

 

Here's how to check: 

 

  1. Go to the Expenses tab and select Vendor. 
  2. Click the vendor name and open the Bill Payment. 
  3. Check the Bank/Credit account field.
  4. Modify it if need be. 

 

To check your vendor credit, go as follows:

 

  1. Go to the Accounting tab and select Chart of Accounts. 
  2. Locate and open the Petty Cash account. 
  3. Review the transactions. 

 

Additionally, regularly reconciling your petty cash account is a good idea. Once you do, you can move your paper slips to your long-term record keeping because the transactions are in QuickBooks.

 

Furthermore, check out these articles below to know more about handling vendor credits and other related topics: 

 

 

Please do not hesitate to ask your questions in the Community. You are always welcome to join us. Keep safe.

1 reply

MichelleBh
MichelleBhAnswer
July 31, 2022

You're on the right track in recording your vendor credit, @allen25glenn. Good job on that!

 

Thanks for conveying the complete scenario. I'll share additional information about handling Petty Cash in QuickBooks Online. This way, I can guide you accordingly. 

 

The credit will be transferred directly to that account if you pay the bill with a Petty Cash account. That said, you don't need to add the vendor credit from Petty Cash. 

 

Here's how to check: 

 

  1. Go to the Expenses tab and select Vendor. 
  2. Click the vendor name and open the Bill Payment. 
  3. Check the Bank/Credit account field.
  4. Modify it if need be. 

 

To check your vendor credit, go as follows:

 

  1. Go to the Accounting tab and select Chart of Accounts. 
  2. Locate and open the Petty Cash account. 
  3. Review the transactions. 

 

Additionally, regularly reconciling your petty cash account is a good idea. Once you do, you can move your paper slips to your long-term record keeping because the transactions are in QuickBooks.

 

Furthermore, check out these articles below to know more about handling vendor credits and other related topics: 

 

 

Please do not hesitate to ask your questions in the Community. You are always welcome to join us. Keep safe.

A
allen25glennAuthor
August 1, 2022

Thank you very much. You are of great help. At first, I thought of it when I make a vendor credit, a question came to my mind why the expense was not deducted. And I get it now for new purchases the vendor credit is applied resulting to zero amount of purchase. 

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