Las Vegas CPA Q&A: Bill Credits in QuickBooks
Q: A vendor wrote me a check instead of giving me a credit for some merchandise I returned. How do I record the deposit in QuickBooks?
A: Usually, you can just go the Make Deposits screen, select the vendor, select the appropriate expense account, and enter the amount (see screenshot below).
However, this method has its limitations. You can’t use different dates for the credit to accounts payable and the deposit. You also can’t apply the credit to items, customers or jobs. If any of these limitations apply to the transaction, follow the steps below.
- Go to the Enter Bills screen and click on Credit. Enter the expense account (or item) and amount. You may want to use the date from the original invoice that the credit was for. If necessary, enter the customer/job and check the billable box.
- Go to the Make Deposits screen and select Accounts Payable under the field for “From Account.”
- Go to the Pay Bills screen. Make sure the box is checked for the amount of the credit.
- Click on the Set Credits button and the window to apply the credit will appear as shown below. Check the box next to the credit that needs to be applied. Then click on Done.
- The Apply Credits screen will close and the Pay Bills screen should now be showing again (see screenshot in #3). The amount to pay column should show as zero. Click on the Pay Selected Bills button.
- A window titled Payment Summary will appear showing the amount paid as zero. You can then pay more bills or click on Done.