In MakersHub, you process vendor credits just as you would a bill. When a bill is approved with a negative amount, MakersHub will recognize it as a credit and create the entry on your behalf in QuickBooks. Importantly, QuickBooks identifies two distinct transactions between Vendor Credits (Credit Memos) and Credit Card Credits. MakersHub can accommodate both transaction types as outlined below.
Vendor Credit vs Credit Card Credit Comparison
Vendor credits/credit memos and credit card credits both reduce costs, but they apply to different parts of your accounting. Vendor credits are tied to a specific vendor and your accounts payable, reflecting amounts the vendor owes you to be applied to future bills. Credit card credits are tied to a credit card account and represent refunds that reduce your credit card balance.
Vendor Credits
Must originate under the Bills tab.
Represent money owed to you by a vendor
Linked to a specific vendor
Reduce Accounts Payable (A/P) when applied
Credit Card Credits
Recommended to originate under the Receipts tab.
Represent money returned to your credit card
Linked to a credit card account
Reduce your credit card liability
How to Approve a Vendor Credit
While vendor credits are processed the same as bills in MakersHub, the total must be negative in order for it to sync as a credit.
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If the credit memo is written with a positive total, you can Switch to Vendor Credit to make the values negative.
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Once vendor credits are approved in MakersHub with a negative value, they will sync accordingly.
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Accidentally Syncing a Credit as a Bill
Because credits and bills are distinct transactions in QuickBooks, and MakersHub does not have the ability to delete from your QuickBooks, these two transactions are not interchangeable. Click here to walk through the best way to correct a bill or credit when this situation arises.
How to Apply a Vendor Credit to a Payment
Once a credit has been been approved, it will move over to the Accounts Payable tab and appear in green with a negative balance.
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When you are ready to make a payment and have a positive open balance for the vendor, you can select the bills and schedule payment. MakersHub will reduce the Total Payment by the credit amount and share the credit note on the remittance details.
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How to Approve a Credit Card Credit
After coding the credit and confirming that the total is negative:
Click the side arrow next to the Approve button
Enter a CC as the payment method
Click Approve & Mark as Paid
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If an approval workflow is configured, the final approver must follow these steps for the transaction to sync as a Credit Card Credit. Once credit card credits are approved in MakersHub with a negative value, the will sync accordingly.
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