{"id":1001140,"date":"2018-04-12T10:59:02","date_gmt":"2018-04-12T14:59:02","guid":{"rendered":"http:\/\/blog.bmcgiverncpa.com\/?p=1001140"},"modified":"2020-01-22T04:12:26","modified_gmt":"2020-01-22T04:12:26","slug":"what-is-a-vendor-credit-and-how-do-you-record-one","status":"publish","type":"post","link":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/2018\/04\/12\/what-is-a-vendor-credit-and-how-do-you-record-one\/","title":{"rendered":"What Is a Vendor Credit, and How Do You Record One?"},"content":{"rendered":"

Whether you\u2019re getting a vendor credit for a refund or a return, you can record it in QuickBooks Online.<\/em><\/p>\n

When you\u2019re dealing with your company\u2019s vendors, you\u2019re probably accustomed to money flowing in one direction: theirs. Maybe you send them purchase orders and they send you invoices. Or they send you bills and you pay them. Or you walk into a store and buy something your business needs.<\/p>\n

Sometimes, though, vendors owe you <\/em>money. Probably the most common scenario is a return of merchandise, products that you\u2019ve sent back to the supplier for any of a variety of reasons. You may be issued a credit of some kind simply because you\u2019ve been a loyal customer, and a vendor wants to reward you. You might also get a rebate for an item you bought.<\/p>\n

In these cases, you\u2019ll enter a Vendor Credit <\/strong>in QuickBooks Online, which you can apply the next time you buy something from that supplier. Usually, the process is pretty straightforward, but sometimes situations arise that may make it hard for you to know how to record a vendor credit accurately. We can help if this happens.<\/p>\n

Simple Steps<\/strong><\/p>\n

Let\u2019s start with a simple example. Let\u2019s say you received a shipment of pens that you\u2019d planned to use as promotional items for your salespeople. The ink on some of the pens had gotten smudged, so your company email address printed on them was illegible. The supplier issued you a credit of $50.00 for future purchases, and sent you a reference number to use.<\/p>\n

\"\"<\/p>\n

It\u2019s easy to complete a Vendor Credit <\/strong>form in QuickBooks Online for a simple credit. But other situations are more complicated. <\/em><\/p>\n

Here\u2019s how it would work. Click the + (plus) <\/strong>sign in the upper right corner of the screen and select Vendors | Vendor Credit<\/strong>. A screen like the partial one pictured above would appear. These are the fields you would need to complete:<\/p>\n

Vendor <\/strong>\u2013 Click the down arrow in the field in the upper left corner and select the correct vendor, or + Add New<\/strong>.<\/p>\n

Payment date <\/strong>\u2013 Change the default date if it\u2019s not correct.<\/p>\n

Ref no. <\/strong>\u2013 Enter a reference number if applicable.<\/p>\n

Under Account details<\/strong>, click in the field under Account<\/strong>, and open the drop-down list by clicking the down arrow on the right. Select the account you used when you created the original expense. Enter a Description <\/strong>and the Amount<\/strong> of the credit.<\/p>\n

You can add a Memo <\/strong>in the box at the bottom of the screen if you\u2019d like, and select any Attachments <\/strong>to include from your file directories. Otherwise, click Save and close <\/strong>or Save and new<\/strong>.<\/p>\n

Additional Input<\/strong><\/p>\n

There\u2019s much more to the Vendor Credit <\/strong>screen that you didn\u2019t need to consider for this example. The row where you entered Account<\/strong>, Description<\/strong>, and Amount <\/strong>contains several additional fields that you may need to complete in some cases. They are Billable<\/strong>, Markup %<\/strong>, Tax<\/strong>, Customer<\/strong>, and Class<\/strong>. If you\u2019re not sure when these fields are required, ask us to go over these concepts with you.<\/p>\n

There\u2019s also another section under Account Details<\/strong> you may need to address: Item Details<\/strong> (click the arrow to open if necessary). You would only enter information here if you\u2019re returning items to a vendor. Fields displayed there include Product\/Service<\/strong>, Qty <\/strong>(quantity), Rate<\/strong>, and Sales Amt<\/strong> (amount). We don\u2019t recommend that you do this the first time on your own; let us help.<\/p>\n

Using Your Credit<\/strong><\/p>\n

How do you redeem this credit? QuickBooks Online reminds you to use it.<\/p>\n

\"\"<\/p>\n

QuickBooks Online records your Vendor Credits<\/strong> and reminds you that they\u2019re there when you go to pay that vendor again.<\/em><\/p>\n

The next time you enter a transaction that involves\u2014or will involve\u2014sending that vendor some money, you\u2019ll see a record of that credit to the right of the Check<\/strong> or Expense <\/strong>screen, for example. In the image above, a small box has opened as soon as the vendor\u2019s name was selected. You can Add <\/strong>that credit to the current transaction or Open <\/strong>it if you want to see the original screen.<\/p>\n

Not everyone uses Vendor Credits<\/strong>. Some businesses find workarounds. But we recommend you at least understand when and how they\u2019re used so your bookkeeping is accurate and precise. We\u2019d be happy to spend some time with you going over your financial relationship with vendors, and how QuickBooks Online helps you document it.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Whether you\u2019re getting a vendor credit for a refund or a return, you can record it in QuickBooks Online. When you\u2019re dealing with your company\u2019s vendors, you\u2019re probably accustomed to money flowing in one direction: theirs. Maybe you send them purchase orders and they send you invoices. Or they send you bills and you pay […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[46,47],"tags":[50,51,52,41,53,54],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1001140"}],"collection":[{"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=1001140"}],"version-history":[{"count":1,"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1001140\/revisions"}],"predecessor-version":[{"id":1001225,"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/1001140\/revisions\/1001225"}],"wp:attachment":[{"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=1001140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=1001140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=1001140"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.bmcgiverncpa.com\/blog\/index.php\/wp-json\/wp\/v2\/yst_prominent_words?post=1001140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}