QuickBooks 2005: The Missing Manual

Recording Vendor Credits

You ordered 30 dozen lightweight polypropylene t-shirts for your summer Death Valley marathon, but your vendor mistakenly silk-screened the logo on long-sleeved cotton t-shirts heavy enough to survive a nuclear blast. Despite your high-temperature ranting, the vendor insists on issuing a credit instead of a refund check. The only good thing about this situation is how easy it is to record a credit in QuickBooks:

1. Choose Vendors→Enter Bills.

   QuickBooks opens the Enter Bills dialog box as if you are going to enter a bill.

2. Just below the dialog box menu bar, choose the Credit option.

   QuickBooks changes the heading in the dialog box to Credit and the Amount Due label switches to Credit Amount. Otherwise, the fields stay the same.

3. On the Expenses and Items tabs, fill in the cells with the items for which you are receiving credit.

   You can enter positive numbers just as you did when you entered the original bill. QuickBooks takes care of the postings. Your inventory account decreases due to the inventory items you return. Expense accounts decrease due to expense credits. And the total credit amount becomes a debit to your Accounts Payable account, reducing its balance as well.

4. Click Save & Close.

Note

To enter a refund for a credit card charge, in the Enter Credit Card Charges dialog box, choose the Credit option and fill in the rest of the fields based on the refund you received.