Skip to main content
S
SSofME
November 9, 2021
Question

How to enter a payment that was made to our corporate office when it was suppose to come to our office

  • November 9, 2021
  • 1 reply
  • 0 views

Our company is a independent company that resells products for different suppliers.  I invoiced a customer for products but they paid our supplier directly instead of our company. The customer has other divisions of their company that pay the supplier directly so I can see how the mistake occurred. I contacted the supplier after the customer told me what happened. The supplier issued me a credit for the payment they received from this customer. How should I input this in QB Desktop? I need to show the customer paid and need to make sure my inventory is reduced properly. I also need to add in the supplier credit to be taken on my next bills I pay to the supplier. How do I make these entries. 

1 reply

katherinejoyceO
katherinejoyceO
November 9, 2021

Thanks for sharing your concerns, @SSofME. Currently, we're unable to apply vendor credits directly to the customer's invoice. 

 

The best option to enter link the vendor's credit to the customer's invoice is to create a clearing account, then move the funds through journal entries. 

 

 I'll guide you how:

 

To create a Bank account called Clearing Account

 

  1. Go to the Lists menu, then click Chart of Accounts.
  2. In the Chart of Accounts window, right-click anywhere and select New.
  3. Choose Bank for the Account Type.
  4. In the Account Name field, enter Clearing Account.
  5. Hit Save & Close.

 

After that, follow the steps in this article to create journal entries. I'd suggest you consult an accountant for the proper posting of your transactions.

 

Once done, apply the credit to an invoice. Here's how: 

 

  1. Go to the Customer menu, then select Receive Payments.
  2. Select the invoice, then click Set Credits and select the credits to apply.
  3. Select Done, then click Save and close.

 

For future reference, you'll want to check out this article to learn more about adjusting your inventory quantity or value in QuickBooks Desktop.

 

Let me know how it goes for you. I'll be here to help you with some more of your concerns. Take care!

 

 

S
SSofMEAuthor
November 16, 2021

Thank you Katherine! My accountant is not that familiar with QB so he was scratching his head a bit trying to help me figure it out. We ended up handling it a little different and it seemed to work. We did set-up the clearing account in the accounts as you suggested. As I had already invoiced the customer I had to show it paid on my end. So I also set-up a payment type of Clearing Account  to show the payment received. In the reference I put that it was paid directly to the supplier. I recorded the deposit to Clearing Account. We then put in the credit from the supplier to the expense account name of Other Income. We made the journal entries debiting Other Income and Crediting the Clearing Account. Not sure this is correct but it worked out for my inventory numbers and I was able to take the credit from the supplier on my next bills. Thanks again.

Terms & ConditionsAccessibility statement