How to Handle a Supplier Mistake in QuickBooks
Ask the Accountant…
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 your questions to Harriet at Ask The Accountant.
QuickBooks Premier and Enterprise can be modified to better serve ad specialty distributors. Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor. She advises ad specialty distributors to use QuickBooks Premier and Enterprise, often in conjunction with other industry-specific software, to manage the complexities of the ad specialty business, with the results being time saved, errors eliminated and an overall accurate accounting of your business. Contact her at email@example.com.