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K
Kristen_DBS
November 4, 2021
Question

Can I record a deduction to a contractor's payment? Where to I enter the deduction so when I write the contractor a check the deduction pops up so I can deduct on check?

  • November 4, 2021
  • 1 reply
  • 0 views
Similar to how you can enter an expense and make it billable to a customer, so it appears as an option when you next invoice them, I would like to record a billable expense but to a contractor, to be deducted from the contractor payment.

1 reply

R
ReymondO
November 4, 2021

Hi there, @Kristen_DBS. 

 

You can create a vendor credit in QuickBooks Online. You may use it to deduct your payment when paying a contractor's bill. Here's how:

 

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

 

For more references, here are articles to help you track all money you've paid to a vendor for a particular date range:

 

 

Let me know if you have other questions about QuickBooks. I'll be right here to help you out. Have a great day.

K
Kristen_DBSAuthor
November 5, 2021

Thank you for your prompt reply.  This is for a contractor that I pay by check, but occasionally he receives a payment on my behalf.  We would like to record this amount due from the contractor, to be deducted from his next check.  I did create a Vendor Credit and when I went to write this contractor a check, the Vendor credit pops up on the right (which  is what i was hoping for), I click it to add and it gives me a message: You cannot add a credit for a vendor without any open bills. :/

A
Archie_B
November 5, 2021

Thank you for following up, Kristen_DBS.

 

I'd like to share some insights about vendor credits in QuickBooks Online.

 

Vendor credit is linked to your Accounts Payable account which only means it can be associated with a vendor bill.

 

That being said, to track credits for your vendors, you should consider entering bills in QuickBooks. This way, you can track your account balance and credits using Accounts Payable. Otherwise, you can add and use notes to remind yourself about this credit in the future.

 

Get back to me if you still have other follow up questions about vendor credit. Have a nice day!

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