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How can I link a vendor credit to a customer payment for their invoice? The vendor is a different company than the customer.

Forum|Forum|6 years ago
February 1, 2020
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QuickBooks Online

Best answer by MaryLurleenM

As per Rustler, we're unable to link vendor credit to a customer payment for the invoice, danielle17.

I'll send this suggestion to our product developers. We can see how this can be useful in the future.

Let me know if you have other concern.

Rustler

You can not, QB keeps purchases and sales separate

Why would you?

If you got a credit, and want to refund the customer, do so from your bank account or give the customer a customer credit.

D

danielle17Author

Perhaps there is a better way? We have a customer who is financing through a vendor of ours. Instead of being paid from the vendor, we received a credit from them. I want the invoice from the customer to show as paid. With no money being transferred, I assumed we would need to link the credit from the vendor to the invoice for the customer?

MaryLurleenMAnswer

As per Rustler, we're unable to link vendor credit to a customer payment for the invoice, danielle17.

I'll send this suggestion to our product developers. We can see how this can be useful in the future.

Let me know if you have other concern.

R

rowens2022

I am curious about this as we track job costs through vendor invoices. Charges from Vendor A are logged against the Smith job. Vendor A issues a credit for returned material. Quickbooks Online records it as a deposit but I need it to be a credit against the job. Is that possible?

Thank you!

C

ChristieAnn 11

Thank you for visiting the QuickBooks Commuity, rowens2022.

Please know that recording credit to a vendor depends on how you record your purchases. With this, you can open the vendor credit that you've created and you have the option to choose the correct project or job from there. This way, the deposit will credit against or applies to the job. I've attached a screenshot below for visual reference.

Lastly, you may refer to this article to see steps on how you can run specific reports that will reflect all payments made to vendors: Run a report with vendor totals.

If there's anything else that I can help you with regarding your vendor and project transactions in QBDT, please let me know in the comment below. I'll be here to lend a hand, rowens2022. Stay safe!

J

Julie GJ

We do job costing and have properly recorded both the vendor bills and the credits to the correct job and made them billable, but when we invoice the customer, the credits are not pulling through. Why is this?

L

LMC-1

I originally posted this question in 2020. I have a solution that is working for me, so I thought I would share it. I'm not a CPA so be sure to check with your CPA to see if this will work for you.

I create two journal entries that are as follows (QB Desktop 2020):

1. If you don't already have a wash account, set up a new bank account that is called "Wash Account"

2. Go to the "Company" tab at the top of the screen and select "Make General Journal Entries" from the drop-down list

3. Date and number your first entry

4. Under the "Account" drop-down select "Accounts Payable".

In the "Debit" column enter the amount of your vendor credit.

In the "Memo" column enter the credit # and any other notes you feel are important

Under the "Name" column select the vendor you received the credit from.

Go to the next line under the "Account" drop-down again. Select "Wash Account"

In the "Credit" column enter the amount of your vendor credit again.

At the bottom of the screen click "Save and New"

5. Date and number your 2nd entry.

6. Under the "Account" drop-down select "Accounts Receivable".

In the "Credit" column enter the amount of your vendor credit.

In the "Memo" column I enter the credit # again, and any other notes I feel necessary.

Under the "Name" column select the customer whose invoice you want to apply the credit to.

Go to the next line under the "Account" drop-down again. Select "Wash Account"

In the "Debit" column enter the amount of your vendor credit again.

At the bottom of the screen click "Save and Close".

7. Now you can go to the customer's invoice you want to credit and apply the credit amount to your

customer's invoice.

8. In accounts payable the credit should show up when you pay a bill from that vendor. You can apply it like you do with a normal credit memo.

I attached examples of my entries. I hope this is clear enough. Kudos to all of the people who reply to topics with step-by-step directions! It's tricky and very much appreciated!