Vendor credit less than the bill amount QBO
Have you ever had a Vendor Credit that was less than your total bill? This post idea came from Saulo, who posted a question on my other video on vendor refunds (found here). He had an open bill and a vendor credit for less than the bill. He wanted to apply the total credit without paying the bill. The video below demonstrates the entire process as well as the problem of the missing "account" in the transaction he described.
Vendor Credit: Automate the entire process
You know I am all about automation. This works for many companies but not all. But there is a setting in the settings section of QuickBooks Online (QBO). It is under the gear wheel>account and settings>advanced>automation>automatically apply credits. If that is checked, it will apply them for you. That will make this entire process unnecessary.
Vendor Credit for less than the bill...
To apply it, go to expenses>vendors. Find the vendor. Enter the bill and the vendor credit. Now go to the bill and click create bill payment. Here is the tricky part, you MUST have a bank account in the account box at the top of the page. This will be a zero transaction. In the box where it shows the balance of the bill paid, change the payment amount applied to the amount of the vendor credit you applied. In the video, the total vendor refund was $500.00.
Save the transaction...
That is the next step. If you go back to your vendor's page, the amount due and the open balance will now match. That is how you will tell if the vendor refund has been applied. Now you will ensure that you don't accidentally overpay the bill, which is why you are probably taking these steps in the first place.
Last piece of advice: It's a tricky transaction...
So the transaction is a bit tricky if you don't know the steps. The video below will step you through them. Just like Saulo, if you have a question you need answered, I may make a video for it!
If you have any questions or would like to see a future video on another topic, please reach out to me on Facebook.