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JamesWoodcock
August 8, 2023
Question

Payments

  • August 8, 2023
  • 1 reply
  • 0 views

Can you please advise step by step guide to handle the following.

 

Receive invoice for product from supplier, payment terms are 30 days. As I am accrual accounting and submit VAT every quarter, I enter the invoice as a bill (assuming the invoice is in the last month of the quarter). However I then receive a credit against the invoice (normally early the following month) , which the supplier offsets against my payment due and adjusts the direct debit value accordingly. How do I handle the credit note in QB so that the original invoice (bill in QB) and value of the credit match the payment . Appreciate your assistance. Thanks

1 reply

A
Ashleigh1
August 8, 2023

 Hello JamesWoodcock, thanks for posting on the Community page, 

 

  1. Go to the + new 
  2. Create the bill 
  3. Create the credit note 
  4. Link the bill and the credit note with a cheque (expenses-expenses- new transaction- cheque
  5. Receive payment make sure everything is ticked save and close
  6. Match at the bank

 

So the bill minus the credit note should then equal whatever  the direct debit payment is. 

J
JamesWoodcockAuthor
August 9, 2023

Hi Ashleigh,

 
Can you please explain in more details what you mean by linking the bill and the credit note with a cheque ? Can you clearly explain the steps (expenses-expenses -new transaction - cheque receive etc). Thank you.

 

Rubielyn_J
Rubielyn_J
August 9, 2023

Understandably, this process might seem a bit intricate, so I'll break down the steps for you clearly and straightforwardly, @JamesWoodcock.

 

When we talk about linking a bill and a credit note with a cheque transaction, we're essentially aiming to establish a connection between these financial elements. This connection ensures that your accounting records accurately reflect the payment you're making while accounting for any adjustments due to credit notes. 

 

Once the bill and credit note are generated, the next step involves using the bill payment process to apply these as payment. This can be accomplished by issuing a cheque.

 

Here's how:

 

  1. Select + New and choose Cheque.
  2. From the Payee dropdown, select the supplier you paid. This opens a window with all of their outstanding bills.
  3. Select Add to add an open bill to the cheque. Note: If you don't see this, select the small arrow next to the amount. If you have credit with the supplier, you can also add it from the Credits section.
  4. From the Bank/Credit account dropdown, choose the account you made the cheque payment from.
  5. In the Amount field, enter the cheque amount.
  6. In the Outstanding Transactions section, choose the bills the cheque payment went to. 
  7. Once done, click Save and close.

 

For additional information, feel free to refer to this article: Track bills and record the payments.

 

I'm also sharing this link to help you know how and when to give a credit note or delayed credit to customers: Create and apply credit notes or delayed credits in QuickBooks Online.

 

If you encounter any questions or hurdles along the way, don't hesitate to reach out for further assistance. I'll be around to help you. 

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