How do I post a credit invoice for material I returned to a supplier?

Hello quinnmanderson,

Thanks for joining us here in the QuickBooks Community. I hope you're enjoying using QuickBooks Online, and I know how important it is to make sure you're accounting for all of the transactions relevant to your business. I can help you with this transaction for an item returned to your supplier.

Based on what you've said here, it sounds to me like you're looking for a Supplier credit. A supplier credit means that you returned the item to the supplier, but instead of paying you the money back, they gave you a credit that you can use against a future bill or purchase. If that's the case, creating this is as simple as going to the +New icon and choosing Supplier credit. Once that's created, you can then apply it to a bill or another purchase later.

One thing to pay attention to with credits is that QuickBooks Online has automation options for where your credits apply. If the automation is turned on, the program will apply it against the new available bill or purchase automatically. If you'd like to control when the credit is applied, follow these steps to turn off the automation.

1. Select the Gear icon.
2. Choose Account and settings.
3. Click the Advanced tab.
4. Click the Automation section.
5. Toggle the Automatically apply credits option.
6. Click Save.

With this turned off, you'll see a Credits section on your transaction where you can choose if you want the credit to apply or not.

If you're hoping to enter a refund instead because you got the money back, there are a few options to consider. I'll leave you the articles below so that you can see the various ways to handle supplier credits and refunds, but don't hesitate to ask more questions if you have any after reading through them.

• How do I handle supplier credits and refunds?

• Enter a refund from a supplier

• How can I record a cash back to my credit card account?

Have a great week.