How to Add a Supplier Credit in QuickBooks Online

A supplier credit (bill credit) records a credit a supplier has given you — for returned items, an overpayment, a pricing adjustment or another correction. The credit reduces what you owe and can be applied against a future bill from that supplier.

Step 1 – Open a New Supplier Credit

A Create (+) – Click the Create button at the top of the left navigation bar to open the transaction menu.

B Supplier credit – Select Supplier credit under the Suppliers column.

Figure – Opening a new supplier credit

Step 2 – Complete the Credit Details and Save

Click Save and close at the bottom of the form to record the credit. It now sits on the supplier’s account, ready to be applied against their next bill.

A Supplier – Choose the supplier who issued the credit.

B Payment date – The date on the supplier’s credit note.

C Ref no. – The reference number exactly as it appears on the supplier’s credit note.

D Category – The expense category being credited — use the same category as the original bill so the expense is reversed correctly.

E Description – A clear description of the item, service or reason for the credit.

F Amount – The value of the credit.

Figure – Completing the supplier credit