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heatingguys
January 2, 2020
Question

How to apply a vendor credit to a Project/customer.I use projects in QBO and currently there doesn't seem to be a way to record any vendor returns to a project.

  • January 2, 2020
  • 2 replies
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Original commenter did not share additional details

2 replies

K
KhimG
January 3, 2020

You can create a vendor credit and add it under a certain project/customer, @heatingguys.

 

Doing so gives you the option to apply it to an open or future bill. Here's how to record it in QBO:

  1. Click the + New button and choose Vendor credit.
  2. Pick a vendor from the drop-down.
  3. Depending on how the purchase is recorded, enter the Category details or Item details. Use the same category, product, or service you're getting credit for.
  4. In the Customer/Project column, pick the right one from the drop-down.
  5. Hit Save and close.

 

Once done, you'll find it under the Transactions tab of the customer/project selected on the vendor credit. Please see screenshot for visual reference:

 

 

When you're ready, you can apply it to a bill. Follow these steps:

  1. From the project's Transaction tab, open the bill.
  2. Click the Make payment button below the Balance Due amount.
  3. In the Outstanding Transactions section, mark the bill.
  4. Go to the Credits section and place a checkmark in the box next to the Vendor Credit.
  5. Hit Save and close.

 

For more information about the process, take a look at this article: Enter a credit from a vendor. 

 

I want to know if you need anything else by leaving a comment. It's always a pleasure to help. Take care!
 

H
heatingguysAuthor
January 3, 2020

That would work fine if I had bills. But I'm COD most everywhere, so things go in as an expense because I pay up front, instead of receiving a bill and putting it in the A/P account, and when I return something it comes right back to my bank account or cash account. 

I believe the way that you proposed would only work if I received bills from my vendor and therefore could actually apply the credit to a bill but since I don't have bills there would be no way to clear out the vendor credit.

For most my returns I add them straight from my banking tab and it doesn't let me assign a customer or project.

Unless I am doing that improperly and not using the system the way I should?

 

    MorganB
    MorganB
    January 3, 2020

    Thanks for following up here, heatingguys.

     

    In addition to what my colleague KhimG recommended, there's another option to consider to apply a vendor credit to a project or customer without a bill. I'm listing the details below.

     

    This can be done using steps similar to those listed above, but by creating a Check, rather than a Vendor Credit. With a check, paying money to a payee will be shown, and the money will instantly leave your account (instead of showing as a credit on the vendor's profile).

     

    1. Click the + New button and choose Check.

    2. Select a vendor from the drop-down menu.

    3. Enter the Category.

    4. Choose the correct Customer/Project.

    5. Click Save and close.

     

    Let me know how this works for you. I'm only a comment away if you have any other questions.

    Ryan R
    Ryan R
    August 10, 2020

    I ended up here b/c I was trying to create a credit for a project's invoice based on an estimate. I was trying to credit a project invoice and have it linked to the estimate from which the invoice was linked.

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