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arshia200
June 29, 2020
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Deducting charges incurred from supplier's invoice payment due

  • June 29, 2020
  • 1 reply
  • 0 views

Dear Team,

 

I am new to quickbooks. 

We have a supplier invoice payment pending for lets say $1000. However, we want to deduct a charge of $100 incurred due to a mistake from their side. We have issued a cheque of $900 in their name.

 

Should i put the full amount of $1000 against the invoice payment ? Or should I put only $900. What about the $100 that will be still shown as 'payment due'.

Best answer by Ashleigh1

Dear Ashleigh,

Can you guide me on that 'use $100 credit' part ? 

 

TIA


Hello Arishia200, 

 

The steps in order to do the 100 credit part are these,

 

  • Go to Supplier Centre
  • Click "New Transactions"
  • Then choose the option for "Enter Bills"
  • Once the bill opens select the option for "Credit" which you can find above the blue window.
  • Enter the account they wish to track this against and the amount.
  • Click Save

 

  • Open up the Bill
  • Select Pay Bill in the top right.
  • This will open up the Pay Bills screen
  • Click the "Set Credits" option and choose the credit you created to reduce the total amount payable

We would advise that you speak to the Desktop team to go through it if you have any questions, the number to ring for that support line is  0808 168 9535 and they will be able to set up screen shares and help guide you to record this in your account.  

 

 

1 reply

S
SarahannC
June 29, 2020

Hi there, arshia200.

 

I'm glad that you're now using QuickBooks to help you manage your business. Let me share some information about your query.

 

The $100 charge will be recorded as prepayment in QuickBooks. We can either record the $100 using Accounts Payable or an Asset account.  First, we can write a cheque to the supplier and record it to your (A/P) account. It's a way to decrease the balance until you are ready to enter the final bill and use the $100. 

 

If you have created a check within the Banking page already, make to select the Account Payable in the Account column. Then, choose the supplier name in the Customer: Job column. 

 

Once done, let's create a new bill and apply the prepayment to the bill. Let me walk you through on how to do it. Here's how:

 

  1. Go to the Suppliers menu and select Enter Bills.
  2. Fill in the needed information.
  3. In the Amount column, enter 100.
  4. Then, Save & Close.

 

Apply the $100 to $1000. Here's how:

 

  1. Go to the Suppliers menu, then select Pay Bills.
  2. Highlight the bill you want to associate with the prepayment.
  3. Select Set Credits.
  4. Put a check-mark to the $100. Then, Done.

 

If you would like to use an Asset account to track the prepayment, you can check out here for the complete steps on how to do it: Record supplier prepayments or deposits for prepaid parts or services.

 

Let me know if you have follow-up questions with this. I'll be here to assist you further. Take care!

A
arshia200Author
June 29, 2020

Thank you for the reply.

The amount of $1000 has already been entered as a bill. And as i said, we have issued a cheque for $900. So the amount due remaining in my 'pay bills' section for that particular bill is shown as 

$100.

 

So if I create a new bill for $100 against the same supplier as you are saying, wont that become double ?

 

Shouldn't I instead, set credits for the amount of $100 that is being shown as due for payment in the 'pay bills' section ?

 

Please clarify,

thanks.

A
arshia200Author
June 29, 2020

I did not go on the banking tab and write a cheque to the supplier if thats what you are thinking. I directly went on pay bills, ticked the bill i want to pay, selected the method of payment (cheque), in the amount to pay column entered $900, assigned a cheque number and clicked done.

 

If i was supposed to go on the banking tab and do it, then please let me know.

As i said, I am very very new to Quickbooks and still learning how to use it.

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