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RaeInReno1
July 25, 2022
Solved

Workman's Comp Audit Credit on Account

  • July 25, 2022
  • 1 reply
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We just received a large credit from our Workman's Comp supplier as a result of a prior year audit.  What is the proper method to post this credit to be drawn down with current premiums due? (Quickbooks Desktop Premier Plus 2022)

 

Thank you,

Rae Burnet

Best answer by Rainflurry

@RaeInReno1 

 

You can enter a credit memo and assign your work comp expense to it and then apply that to the next bill.  Or, just enter the reduced premium when you are entering your next work comp bill.  Either way, the net effect is the same.   

1 reply

Rainflurry
RainflurryAnswer
July 26, 2022

@RaeInReno1 

 

You can enter a credit memo and assign your work comp expense to it and then apply that to the next bill.  Or, just enter the reduced premium when you are entering your next work comp bill.  Either way, the net effect is the same.   

    G
    GlinetteC
    July 26, 2022

    You may enter a Vendor credit to apply it to the next bill, Raejb.

     

    Let me guide you on how to create one:

     

    1. From the Vendors menu, select Enter Bills.
    2. Ensure you select the Credit radio button.
    3. Then ensure the word Credit appears at the top of the form.
    4. Select the name of the vendor who issued the credit from the Vendor drop-down.
    5. Enter the date you received the credit from the Date calendar selector.
    6. Then enter the amount of the credit into the Credit Amount field.
    7. Then select the affected accounts or items on the Expenses tab at the bottom of the window.
    8. Finally, click the Save & Close button to save the credit for later use.

     

    To apply the credit to a bill:

     

    1. Go to the Vendors menu in your QuickBooks Desktop (QBDT) and select Pay Bills.
    2. From the Filter By field, select your preferred vendor.
    3. Select the Bill you want to apply the credit to.
    4. Click Set credits to apply the credit to the bill and click Pay Selected Bills.

     

    I've also included this reference for a compilation of articles you can use while working with us: Expenses and Vendors for QuickBooks Desktop.

     

    If there's anything else you need help with, you can post them here anytime.

    R
    RaeInReno1Author
    July 26, 2022

    Great!  I'm on the right track then.  I basically wondered if this large credit for 2019 Workman's Comp expenses should be posted to a different GL account labeled to reflect the year it was for.  Make sense?

     

    Thank you everyone that posted a reply.

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