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CML61
November 17, 2023
Solved

How do you apply a vendor credit when you are scheduling an ACH payments on QB Online?

  • November 17, 2023
  • 1 reply
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I am trying to pay vendors on QB Online via scheduling ACH payments.  Some of my vendors have issued me credits for items returned.  I cannot figure out how to apply those credits to show being applied to the invoices I am paying via ACH.

Best answer by ChristineJoieR

I can help you how you can apply vendor credit to your bills in QuickBooks Online, @CML61.

 

In order to successfully apply the vendor credits, we will need to cancel your scheduled bill payment for now. Following that, we can proceed to create an expense to link the bill to the vendor credit.

 

You can follow these steps to cancel your scheduled bill payment:

 

  1. Sign in to your QuickBooks Online company file.
  2. Press the Expenses tab, then Bills.
  3. Select Show Bill Pay payments.
  4. Choose the scheduled bill payment from the list, then select View details.
  5. Pick Cancel this payment.

 

Next, let's create an expense by following the steps below:

 

1. On the + New, click the Expense.

2. Enter the vendor you want to apply the credit.

3. Once done, the bill and the vendor credit will appear on the right side of the screen.

4. Put a checkmark the Outstanding transactions and the Credits you want to link.

5. Lastly, press the Save and Close button. 

 

These steps help you in applying vendor credits when scheduling ACH payments in QuickBooks Online. If you have any further questions or need additional assistance, feel free to ask. Good luck with your vendor payments!

 

1 reply

C
ChristineJoieRAnswer
November 17, 2023

I can help you how you can apply vendor credit to your bills in QuickBooks Online, @CML61.

 

In order to successfully apply the vendor credits, we will need to cancel your scheduled bill payment for now. Following that, we can proceed to create an expense to link the bill to the vendor credit.

 

You can follow these steps to cancel your scheduled bill payment:

 

  1. Sign in to your QuickBooks Online company file.
  2. Press the Expenses tab, then Bills.
  3. Select Show Bill Pay payments.
  4. Choose the scheduled bill payment from the list, then select View details.
  5. Pick Cancel this payment.

 

Next, let's create an expense by following the steps below:

 

1. On the + New, click the Expense.

2. Enter the vendor you want to apply the credit.

3. Once done, the bill and the vendor credit will appear on the right side of the screen.

4. Put a checkmark the Outstanding transactions and the Credits you want to link.

5. Lastly, press the Save and Close button. 

 

These steps help you in applying vendor credits when scheduling ACH payments in QuickBooks Online. If you have any further questions or need additional assistance, feel free to ask. Good luck with your vendor payments!

 

    K
    KJane44
    December 11, 2023

    I have followed your instructions and the option boxes did not open up on the right.  I did not have an choice to click save and close.  I am trying to post credit card payments, with credits applied.

    S
    SheandL
    December 11, 2023

    I appreciate the effort in following the steps provided by my colleague, @KJane44. Let me share important details regarding credit card payments and vendor credits in QuickBooks Online.

     

    Before anything else, I would like to ask for more information about how you recorded your credit card, and it would be best if you could also provide us with some screenshots. 

     

    Vendor credit and credit card credit work differently. Vendor credit is utilized to record refunds or credit given by a vendor, which are then applied to future purchases or bills from the same vendor. Vendor credit affects the Accounts payable and expense accounts instead of the bank or credit card account.

     

    In contrast, credit card credit provides cash back to a credit card account. This payment reduces the credit card balance, and it's not necessary to link both the credit card credit and the credit card payment.

     

    When a vendor extends credit to a business, it impacts its Accounts Payable account. This credit can be used to settle any outstanding transactions the company may have with the vendor.

     

    If you need help recording credit card payments in QBO, you can refer to this helpful article for guidance: Record your payments to credit cards in QBO.

     

    Feel free to hit the reply button if you have other questions regarding credit card payments. We're always here to assist you.

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