How to Handle a Supplier Mistake in QuickBooks
Question: I have a credit from a supplier for a mistake in an order. How do I enter that in QuickBooks?
Answer: To enter a credit from a supplier in QuickBooks Premier to be used at a later time, follow these instructions:
- Go to "Enter Bills."
- Click "Credit" at the top of the screen.
- Enter vendor.
- For the expense account (instead of the "items" tab), enter your cost of goods sold account.
- Click "Save and Close."
Then, when you have an invoice from that supplier to which this credit will be applied:
- Create the bill from the supplier as usual.
- Go to "Pay Bills" to record payment and select that bill.
- Near the bottom right of that screen, you should see “Total Credits Available” and the amount of the credit you recorded previously.
- Click “Set Credits” and the credit will be applied to the bill, reducing the amount owed by the amount of the credit.
- Record the payment as usual.
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant."
Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.