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jason194
February 23, 2024
Question

Why does my vendor open balance not show the correct amount by accounting for the credit memos?

  • February 23, 2024
  • 1 reply
  • 0 views
I have two specific vendors that often we will return parts for, so we have many credit memos for the returned parts. However, when I look at my open balance for bills to be paid for said vendor, it is way higher than the actual amount because it is not taking into consideration the credit memos that should be subtracting from the total open balance. Is there a way to fix this?

1 reply

L
LollyNino_C
February 23, 2024

We're glad to have you here in the Community, @jason194. I can lend a hand with adding credits to a vendor payment in QuickBooks Online.

 

Thank you for selecting QuickBooks as your partner in managing your business operations. It's our pleasure to provide the information you need.

 

You can use the Pay Bills feature to link or add the credits to the payment. I recommend using the Accounts Payable account to tie the returns to the vendor credit. Please note you're not paying a bill but only using this method to link the transactions. Here are the steps you can follow:

 

  1. Click the + New option in the upper-left corner.
  2. Select 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 $0.00.
  4. Hit Save and close.

 

After following the steps above, you should be able to add the vendor credits successfully.

 

For additional reference, I've attached a link you can use about how to handle vendor credits in Online Bill Pay: Applying for vendor credits.

 

I’ve included this reference that will guide you with keeping your financial records accurate effectively: Reconcile an account in QuickBooks Online. It will help you review and ensure that QuickBooks entries match your bank account statement.

 

Moreover, I also added an article that explains how to efficiently utilize reports in QuickBooks Online. It provides links for customizing and memorizing reports: Run reports in QuickBooks Online. 

 

I'll be more than happy to assist you further with any questions or concerns regarding vendor credits. Please let me know by replying below. Have a great day!

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