How do I apply a specific vendor credit when paying vendor bills? We have several vendor credits against this vendor.

Do not use “Paying Bills” feature when you want apply a specific vendor credit.

It seems there is even a design flaws on “Paying Bills” feature when it comes applying a specific vendor credit when you’ve multiple vendor credits in Vendor’s account. Credit column provides no ability to select specific reference to available vendor credit.

Alternative solution is to create payment Check from the Vendor’s Center.
From the home page screen

  • Go to blue navigation bar on the left
  • Select Vendors tab
  • Select Vendor that needs to be paid
  • Select checkbox of “Bills” need to be paid and also select checkbox of Vendor Credit to apply against this payment
  • GO to Create New button (far right) and select “Check” from the drop-down
  • It will take to new Check#To Print screen
  • Go to far right and select “Add All” under “Add to Check”
  • It will show paid check amount with outstanding bills as well as specific referenced credit
  • Choose “Print Check” at the bottom
  • Choose Preview and Print (bottom right corner)
  • Select Print button

Vendors – how to apply a specific vendor credit against vendor bill payment in new QuickBooks Online