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larryfine
January 5, 2024
Question

How to apply a vendor credit when paying via ACH?

  • January 5, 2024
  • 4 replies
  • 0 views

I have a vendor credit that I wish to apply to a vendor's bill, and then pay that bill with the credit applied via ACH, using QuickBooks Online Billpay. I do not see an affordance that allows me to perform this action.

4 replies

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Erika_K
January 5, 2024

Hi there, @larryfine. 

 

In QuickBooks Online (QBO), we have to link the vendor credits to your bills first and then apply the balance using Online Bill Pay.  

 

Here's how: 

 

  1. Go to the + New button.
  2. Click Pay bills.
  3. Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
  4. Fill out the necessary information. 

 

Here's an article for more info: Enter vendor credits and refunds in QuickBooks Online. 

 

Furthermore, check out this article to learn how to manage your transactions in QBO: Void or refund transactions in QuickBooks Payments. 

 

If you've got questions about handling vendor credits in QBO, hit the Reply button. Keep safe! 

L
larryfineAuthor
January 5, 2024

Thank you for the reply. Unfortunately, the instructions you supplied do not apply for paying via ACH. When following the instructions, the user experience provides an affordance for paying via check, but not for ACH.

 

To reiterate, here is my use case scenario:

 

1. I have a vendor credit for x dollars already entered into QuickBooks online.

2. I want to apply the credit to an open invoice from the vendor.

3. I select New -> Pay Bills and the Pay Bills window displays.

4. From the Pay Bills window there's Starting Check text box, but no affordance that allows me to specify ACH as my payment method. I use ACH payments for my vendors, so that won't work. 

5. Result: I cannot apply a vendor credit for a bill payment I wish to pay using ACH.

 

Does QuickBooks Online Bill Pay not permit users to apply vendor credits when paying a bill via ACH? 

5
57ranch
June 21, 2024

Trying to post an answer, but I keep getting an "Access Denied" message...

5
57ranch
June 21, 2024

Trying to post a reply....

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dpackard
June 28, 2024

I’m having the same issue; I have two vendors that I regularly have credits that need to be applied when I pay the bills for them, so this is vital for me. I tried using the workaround posted here at the end of the thread, but I can't find a way to turn off the Online Bill Pay without canceling the subscription. There used to be a toggle button to turn it off, but it's gone now (or very well hidden)...


Anyway, I was able to create my own workaround; here it is, if it helps anyone else out. For some reason, my post gets an error message if I type the whole thing out here, so I had to upload a PDF of the write-up instead.

 

Questions? Pease let me know and I'll try to help you out.

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cwlambert
December 12, 2024

I was having the same issue and figured a legitimate workaround.  You have to do the transaction backwards.  Instead of applying the credit, then trying to pay the remainder, you need to pay via ACH what the remainder should be.  QB Online will allow an ACH payment of a bill less than the bill total.  After you schedule that payment, you can go back to the bill and it will only show the balance (which should be same as your credit) left due.  You can then apply the credit to that bill and it will show as fully paid.

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