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nsexton
August 2, 2022
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How to apply vendor credit with no associated bill?

  • August 2, 2022
  • 1 reply
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Hello,

 

I need a work-around for the situation. Basically this is our first month using Quickbooks. So we have credits from vendors that do not have a bill to associate it with because those bills were paid out of our previous  system. I don't want to set credits against bills that have no association with these credits. How can I apply these credits from the total owed to vendor?

 

Thanks for any help! 

Best answer by BigRedConsulting

I would like to use the credits. But I do not want to apply them to bills that are not associated with these credits.. These bills that are associated will never be entered into Quickbooks as they were paid out of our old system. 


@nsexton  RE: I would like to use the credits. But I do not want to apply them to bills that are not associated with these credits.. These bills that are associated will never be entered into Quickbooks as they were paid out of our old system. 

 

I don't think you can have it both ways:

 

- If you're not going to enter the bills that the credits are related to and so should be applied to, credits that reduced those bills before you paid them, then there is no reason to enter the credits either.

 

- On the other hand, if you fully paid those bills in a previous period and then received the credits, then in order to use the credits - in order for them to be of any use to you - you need to use them to reduce a future payment to the vendor. If that will not be done, then again there is no reason to enter the credits.

 

That noted, if the vendor issued or agreed to the credits, I don't see any reason why thy wouldn't be able to figure out the case where you use them, especially in the second case above where you fully paid the prior bills before the credits were issued.

1 reply

BigRedConsulting
BigRedConsulting
August 2, 2022

Probably enter them as bill credits. Then later when paying new bills, you can include them in the payment, reducing the payment.

MaryLandT
MaryLandT
August 2, 2022

Thank you for choosing QuickBooks as your accounting software, nsexton.

 

You can only apply credits to open bills. Hence, you can leave those credits in QuickBooks until you receive a bill from a vendor.

 

If the vendor has a balance, you can link those credits to bills. Applying credits to a bill can be done in just a few clicks.

 

  1. Click on Vendors at the top menu bar.
  2. Select on Pay Bills.
  3. Choose the bill that you wish to be paid.
  4. Click the Set Credits button at the bottom to apply credits.
  5. Once done, click on Pay Selected Bills.

 

If you receive refunds from vendors, QuickBooks has different ways how to apply it to your bills. Check out this article for additional information: Record a vendor refund in QuickBooks Desktop.

 

Also, when dealing with your expenses, you may need to follow the right way of tracking the money you owe vendors. Please browse this article: Learn about the Accounts Payable workflows you can use in QuickBooks Desktop.

 

Keep me posted by replying to this thread if you need anything else. I'm always glad to help and answer your questions.

N
nsextonAuthor
August 2, 2022

Thank you for the responses. 

Unfortunately this is what I attempted to do but as mentioned in the post I do not want to apply the credits to bills that need to be paid, that do not have anything to do with these credits. This will confuse the vendor which I would like to avoid. 

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