A vendor just gave me a credit. I don't have an expense for the vendor but I will in the future (for the same amount of the credit). How do I record this credit?

Hi there, @aaron-bg.

I'd be glad to help you record your vendor credit in QuickBooks Online (QBO). Here's how:

1. Select + New.
2. Click Vendor credit.
3. In the Vendor drop-down list, choose your vendor.
4. Depending on how you record purchases with this vendor, enter the Category details or Item details.
5. Select Save and close.

Once done, deposit the money you got from the vendor.

1. Click + New.
2. Select Bank deposit.
3. In the Account dropdown menu, choose the account where you got the refund.
4. In the Add funds to this deposit section, fill out the following fields:
   • Received from: Select the vendor who gave you a refund.
   • Account: Select Accounts Payable. Important: You need to pick Accounts Payable so you can tie the refund to the vendor credit. This may seem a little strange, but it’s the best way to do this.
   • Payment method: Enter the method your vendor used to refund you.
   • Amount: Enter the amount of your refund.
5. Click Save and close.

Finally, use Pay Bills to connect the bank deposit to the vendor credit. Even though you aren’t paying a bill, this is the right thing to do. This last step is to keep your vendor expenses accurate.

1. Select + New.
2. Click Pay bills.
3. Choose the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should be US $0.00.
4. Select Save and close.

For other scenarios in recording vendor credits, you can check out this article: How to record a refund or credit from a vendor in QuickBooks Online.

Please let me know if you have further questions about recording credits from your vendor. I'd be glad to help you out. Have a good one.