Easy Tech TutsHow to Apply Supplier Credit in QuickBooks Easily 2026
By Impran M N
Getting a credit note from a supplier for returned goods or an overpayment needs to be tracked properly so it actually offsets what you owe. This guide covers entering a Vendor Credit in QuickBooks, mapping it to the right expense category, and applying it against an open bill through the Pay Bills workspace. It's for bookkeepers managing accounts payable adjustments.
01Open the Vendor Credit form
From the global create menu, select Vendor Credit to start recording the supplier's adjustment.
02Choose the vendor and map the category
Select the supplier profile, then choose the expense account that matches the original purchase being credited.
03Enter the credit amount
Type in the exact dollar amount of the credit as provided by the supplier's credit note.
04Save the credit record
Save the vendor credit to update your accounts payable balance and reduce your total liabilities to that supplier.
05Apply the credit to an open bill
Open the Pay Bills workspace, select the open bill, and match it against the available vendor credit balance to reduce the amount due.
Frequently asked questions
Does a vendor credit reduce my accounts payable right away?
Yes, saving the vendor credit immediately reduces your total outstanding liability to that supplier.
Can I apply a credit to a bill from a different vendor?
No, vendor credits can only be applied to bills from the same supplier that issued the credit.
What if the credit is larger than any open bill?
The remaining credit balance will stay available on the vendor's account until you have a future bill to apply it against.
How can I check my supplier's current credit balance?
Run a Vendor Balance Summary report to see the current standing and any unapplied credits for each supplier.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
