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How to apply a credit card credit to Vendor account

Forum|Forum|1 year ago
November 20, 2024
2 replies
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Our company held a large event at a hotel. Prior to the event, we were required to may pre-payments. After the event, I received a detailed invoice for all charges which I entered all charges, per category to the account. At this point, it was discovered that we OVERPAID the hotel by $456.06. When I pull up my vendor, it shows -$456.06.

The hotel then issued 3 credits back to a credit card: $207.00, $207.00, and $42.06. Total, they equal the $456.06 that was overpaid. I followed the instructions to go to NEW > Credit Card Credit>Enter Payee, Credit Account, Payment date. I entered the category as it was originally on the vendor bill. After doing this for each one, the system then created a CREDIT on the vendor account. When I went back to the bank transactions, there was now a MATCH next to each of the refunds. I matched them all.

Now, in the vendor account, the system shows each of these as CREDIT CARD CREDIT. Great, but I cannot figure out how to APPLY these credits to the bill. The original bill payment still shows as UNAPPLIED and the SUMMARY stills shows -$456.06 as my open balance.

I’m probably over thinking this. I’ve attached a screenshot of my Vendor account so you can see what I mean exactly.

Thank you,

QB_Redacted.pdf

QuickBooks Online

Best answer by Rainflurry

@SWyatt502

If you didn't already, on your Credit Card Credits, select A/P as the category. That creates "bills" totaling $456.06. Then, go to New > Pay bills and apply the $456.06 credit created by the overpayment to the $456.06 in "bills" created by the Credit Card Credits.

R

rvrfrf

Thanks for getting in touch with the Community, SWyatt502. I appreciate your detailed information.

When recording vendor refunds on a credit card, your Payee field will be used to track the appropriate vendor in step 3. This applies the credit to that vendor's profile. A Bank/Credit account will be selected in step 4. This is the card where you received your refund to. In step 5, a Category will also be entered. This is the original expense account used on your paid bill.

After completing step 6 to Save and close the credit card credit, you'll be finished recording your vendor refund on the credit card. No further steps need to be taken.

I can certainly understand how an ability to apply credit card credits to paid bills could be useful and have submitted a suggestion about it as of today.

You can also submit your own feature requests while signed in.

Here's how:

Use the Gear icon, then go to Feedback.
Enter your suggestion(s) in the Have feedback? window.
If necessary, attach a file with your Camera icon.
Select Next.

Your feedback's definitely valuable to Intuit. It will be reviewed by our Product Development team and considered in future updates. You can stay up-to-date with the latest news about your product by reviewing Intuit's Product Updates webpage.

If you're unsure of why you're seeing a negative open balance, I'd recommend working with an accounting professional. In the event you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

I'll be here to help if there's any additional questions. Have a lovely Wednesday!

S

SWyatt502Author

@rvrfrf thanks for the response but it didn't solve anything. I followed all the steps. That's what I explained in the OP. However, the account summary still shows -$456.06 on the vendor account. It's like I STILL have a credit outstanding. It recorded the credit, but didn't apply it.

RainflurryAnswer

@SWyatt502

If you didn't already, on your Credit Card Credits, select A/P as the category. That creates "bills" totaling $456.06. Then, go to New > Pay bills and apply the $456.06 credit created by the overpayment to the $456.06 in "bills" created by the Credit Card Credits.

S

SWyatt502Author

@Rainflurry Of course! Thank you so much for that reminder. That was exactly what I missed.

The directions I found said to lable the credit exactly as the original invoice. I should have known better.

Thanks for helping me figure this out. 🙂

J

JillatMerch

Hi! I came here to find this same answer - but isn't this creating then a 2nd invoice for the same transaction - I can't understand how that would be right. in my preivous software if you had a credit on the book & received a refund -there was a command for receive refund & you select the account or card it went to - seems more logical & correct. Can anyone help me make sense of the 2nd invoice solution? thanks

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