How to Apply Vendor Credit to Invoice in QuickBooks Online
Managing vendor credits and applying them to invoices is an essential task for businesses using QuickBooks Online. It allows you to keep track of outstanding credits and apply them to future invoices, ensuring accurate accounting and timely payments. In this article, we will guide you through the process of applying vendor credits to invoices in QuickBooks Online.
Step 1: Access the Vendor Credit
To begin, open QuickBooks Online and go to the “Expenses” tab on the left-hand side of the screen. From the drop-down menu, select “Vendors” and then click on “Vendor Credits.” This will display a list of all available vendor credits.
Step 2: Select the Appropriate Vendor Credit
Identify the vendor credit you want to apply to an invoice and click on it to open the details. Review the credit information to ensure its accuracy and relevance to the invoice you wish to apply it to.
Step 3: Apply the Vendor Credit
Once you have confirmed the vendor credit, click on the “Apply Credit” button. A pop-up window will appear, allowing you to select the invoice you want to apply the credit to. Choose the appropriate invoice and enter the amount you wish to apply from the vendor credit.
Step 4: Review and Save
After applying the credit to the invoice, review the information to ensure accuracy. Double-check the amounts and make any necessary adjustments. Once you are satisfied, click on the “Save and close” button to complete the process.
7 FAQs about Applying Vendor Credit to Invoice in QuickBooks Online:
1. Can I apply a vendor credit to multiple invoices?
Yes, you can apply a vendor credit to multiple invoices. Simply select each invoice individually and enter the corresponding credit amount.
2. What happens if the vendor credit amount exceeds the invoice total?
If the vendor credit amount exceeds the invoice total, QuickBooks Online will automatically apply the credit and leave the remaining amount as an outstanding credit.
3. Can I apply a vendor credit to a partially paid invoice?
Yes, you can apply a vendor credit to a partially paid invoice. QuickBooks Online will adjust the remaining balance accordingly.
4. How do I view applied vendor credits on an invoice?
To view applied vendor credits on an invoice, open the invoice and click on the “See credits applied” link. This will display a summary of all credits applied to the invoice.
5. Can I remove an applied vendor credit from an invoice?
Yes, you can remove an applied vendor credit from an invoice. Open the invoice, click on the “See credits applied” link, and then click on the “Remove” button next to the credit you wish to remove.
6. Can I apply a vendor credit to a future invoice?
Yes, you can apply a vendor credit to a future invoice. Simply leave the credit amount as an outstanding credit until you are ready to apply it.
7. How do I track vendor credits in QuickBooks Online?
QuickBooks Online automatically tracks vendor credits in the “Vendor Credits” section. You can access this section by going to the “Expenses” tab, selecting “Vendors,” and then clicking on “Vendor Credits.”