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benson777
April 16, 2025
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Workaround to Set Credits on Bill while still using Quickbooks Bill Pay

  • April 16, 2025
  • 1 reply
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I'm aware that Bill Pay cannot do partial payments (it's been 3+ years and the dev team clearly doesn't care). So what is the workaround when I have a credit memo so I can keep my books in balance? If I simply drop the Bill price, then that doesn't align with the PO total and item receipt. It's messy. Is there something I can record in the Expenses tab of the Bill to add in the credit memo? I don't want to have to write and mail a check every time I want to apply a credit to a bill.

Best answer by Rainflurry

@benson777 

 

Create a bank account in QB called 'Clearing Account'.  On the 'Expenses' tab of the bill you want to pay, enter the Clearing Account under 'Account' and the amount of the credit memo as a negative value.  The bill amount should now be the amount of the bill less the credit memo.  Pay the bill.  

 

Finally, to clear the credit memo, create a new bill for the amount of the credit memo.  On the 'Expenses' tab, select 'Clearing Account' and enter the credit memo amount as a positive value.  Then, go to Vendor > Pay Bills and apply the credit memo to the newly created bill.  It's a bit wonky, but it's still easier than writing and mailing a check IMO.     

1 reply

M
MoiraskyeT
April 16, 2025

Hi, benson777.  

 

To handle a credit memo in Bill Pay, consider creating a vendor credit and remember to switch the payment method from online payment to another option. I can guide you on how to set up a vendor credit.

 

Here's how to create a vendor credit:

 

  1. Go to the Vendors menu located on the top bar of your company file and select Enter Bills.
  2. Choose your supplier's name from the Vendor drop-down list.
  3. Input the appropriate date in the Date field and fill out the remaining necessary fields.
  4. In the Amount column, input an amount that is less than the full figure.
  5. Then, Click Save.

 

You don't need to add a credit memo to the actual bill, once you created a vendor credit, you can use this towards any open or future bills.

 

Please refer to this article for instructions on how to record a vendor refund in QBDT: Record a vendor refund in QuickBooks Desktop.

 

Additionally, this article provides instructions on how to monitor the money you owe to your vendors: Accounts Payable workflows in QuickBooks Desktop. It includes a series of topics that explain how to handle each task within your company file.

 

Your dedication to managing your expenses is truly appreciated. If any questions arise or if there's anything else you'd like to discuss, please leave a comment below. I'm here and ready to assist you at any time, ensuring you have the necessary support to progress smoothly.

B
benson777Author
April 16, 2025

Hi, the whole point of my question was to ask for a workaround so that I can still use Bill Pay. I already have a credit memo created. But when I go to set credits, I am aware that I cannot use bill pay for partial payments. But is there a workaround where I can reduce the total bill cost (i.e. using expenses to apply the credit) so that I can still use Bill Pay? The whole point of my question is that I want to use bill pay and not switch payment options.

C
Chrea
April 17, 2025

@benson777 

You should consider to replace QB Bill Pay to Melio. You can split a single bill into multiple payments and choose different payment methods for each one. Melio will automatically track your remaining balance after each partial payment. Make sure to subscribe to Melio Boost plan to sync with QB Desktop. You can also use it to accept B2B payments for free.

https://quickbooks.intuit.com/learn-support/global/manage-suppliers-and-expenses/pay-bills-online/01/1351046

 

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