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Vendor credits reduce the vendor’s account balance -- but don’t affect jobs and tasks  

Credits aren’t commonly added, since they don’t update job tickets (it’s more accurate to add credits in A/P). But vendor credits are useful for writing off a vendor’s balance that you will never pay. The credit affects the vendor balance and the General Ledger only.

Vendor credits are not checks, but are entered into the Checkbook because they affect accounts payable invoices. Like checks, you’ll apply the vendor credit to unpaid invoices. They are easy to add because they don’t affect jobs, so don’t need job numbers. (To affect the job ticket, enter a credit accounts payable invoice instead.) Vendor credits aren’t numbered with the same sequence of numbers or printed like checks.

Vendor credits post a credit and debit journal entry into the General Ledger. Unlike checks, they don’t credit cash; instead, they should credit a job cost or expense account (since you’re writing off a cost or expense with the credit). The debit account (i.e., dGL) is copied from the invoice itself.

To add a vendor credit

1 From the Checkbook window, choose Edit > Check Tools > Add Vendor Credit.

2 Enter the vendor credit’s details.

Every credit needs a vendor number. If you don’t know the vendor number, choose press Tab to open the Vendor Lookup List. Double-clicking on a vendor name enters it for you.

Enter the date, memo, and amount of the credit. This amount will be applied to unpaid payables like a payment. The memo appears on the checkbook and G/L reports. The reference number identifies this vendor credit on reports. It becomes the JE’s reference number, so should be unique. The reference number is user-defined.

3 Click Save.

The vendor’s unpaid invoices are listed in the Apply Vendor Payment window. It’s the same window you see when writing a vendor check.

4 Apply the credit amount to the vendor’s unpaid invoices, just as if you’d written a vendor check.

5 Click Save.

Credits are applied to vendor invoices just like checks. The amount you apply to invoices must equal the credit amount, or else the credit can’t be saved. This prevents unbalanced entries. The vendor’s invoice balances won’t be updated until the credit is posted.