Hi there, Erin Sullivan. I want to make sure this is taken care of.
If you have recorded an existing vendor credit for the contractor, you can use bill payment. However, if the contractor is also your customer with an open invoice, you can move the Accounts Receivable balance to the Accounts Payable balance on your contractor.
You can create a journal entry to write off the credit balance for that specific vendor. I'll show you how:
- Go to the +New button.
- Select Journal entry.
- Select appropriate accounts and enter all the details.
- Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
- Enter information in the memo section, so you know why you made the journal entry.
- Once done, click Save and new or Save and close.
Once done, apply a journal entry credit to an invoice in QuickBooks. You can check this article for more detailed steps: Apply a journal entry credit to an invoice in QuickBooks Online. Let's pay your bill to link the Journal Entry.
In addition, I recommend reaching out to your accountant for additional guidance regarding this matter. This way, we can ensure the accuracy of your books. If you're not affiliated with one, you can utilize our Find an Accountant tool to look for one in your area.
You may refer to this article to see different details on how QuickBooks lets you access each vendor's records, and edit and view the status of their transaction: View vendor transactions.
Let me know if you have any other questions about managing vendor credit or concerns related to QuickBooks. I’m always here to help. Have a nice day!
