QuickBooks Vendors Guide

While QuickBooks can be a beneficial tool in managing business, unfamiliarity with the software can make it challenging to understand all its tools. While Intuit offers assistance, you must go through many pages of information. 

To help navigate the process, Fourlane put all the information about using QuickBooks for Vendors in one place.

How to Customize Vendor Center 

When a business works with multiple vendors, it’s crucial to keep each vendor’s information separate from one another to avoid confusion or payments going to the wrong vendor.

Thankfully, creating Vendor IDs is easy. To create a Vendor ID, you must start with:

• Creating a custom field and naming it (most people use generic names like “Vendor ID”)
• Picking what forms you want this ID to appear on (like expenses or bills)

Once completed, do the following:

• Go to “Expenses” and click on “Vendors.”
• Pick which vendor you want to have an ID for.
• Click “Edit.”
• Enter the ID in the “Vendor ID” custom field.

Don’t forget to save your work!

How to Create a New Vendor

Have you made some new vendor contacts? Inputting their information won’t take long—especially if they’re already part of the QuickBooks Network. To add a vendor’s information, you must do the following:

• Go to “Expenses.”
• Choose “Vendors.”
• Click on “New Vendor.”
• Add all of the new vendor’s information.
• Save once all the information is entered.

While entering the vendor’s information, you may notice that their information auto-generates. Auto-generation means the vendor is part of the QuickBooks Network. If that’s the case, clicking Save will send an invitation to that vendor.

If the vendor accepts the invitation, hidden information like their email address and phone number will appear. Additionally, whenever the vendor updates their QuickBooks information, your information about this vendor will automatically update to match. 

It’s essential to note that the vendor profile will not automatically update if you add additional information. 

Adding More than One Vendor Simultaneously

You can also enter multiple vendors into QuickBooks:

• Enter the vendors’ information into a spreadsheet.
• Click on “Input Vendor” in QuickBooks.
• Attach the spreadsheet.
• Click “Next.”
• Map the spreadsheet fields to the QuickBooks fields. 
• Click “Next.”
• Review the information and ensure everything matches.
• Click “Import.”

Then you’re done. All the vendors will be part of your list.

How to Merge Duplicate Vendors 

If your business has multiple employees, there’s a good chance they’ll enter duplicate information into your QuickBooks system. If that occurs, you must merge the vendors to prevent confusion and mistakes.

Here’s how to merge vendors in QuickBooks:

• Click “Expenses.”
• Choose “Vendors.”
• Find the vendor and open their profile.
• Click “Edit.”
• Remember the company name and Vendor Display Name (it might be helpful to write them down).
• Go back to “Vendors.”
• Find the profile of the vendor you want to eliminate.
• Click “Edit.”
• Change the display name to match the vendor you want to keep.
• Click “Save” and then “Yes” to confirm.

How to Assign Vendor Types 

You may want to organize vendors by type in QuickBooks. Unfortunately, QuickBooks doesn’t have that ability. 

However, you can add the vendor type in the “Other” field of the vendor profile. To do so, you’ll need to:

• Choose a new or existing vendor profile.
  • If new, enter all the information.
  • If existing, click the “Edit” button.
• In the Vendor Information Window, enter the vendor type in the “Other” field.
• Click “Save.”

How to Create Vendor Credits 

QuickBooks makes organizing payments to and from vendors easy. Use the steps below if you don’t use physical bills to record business expenses:

• Make a vendor credit.
• Click “New.”
• Click “Vendor Credit.”
• In the dropdown menu, pick the specific vendor.
• Add Category/Item details.
• Click “Save.”

If this credit is an inventory item, QuickBooks will return it to inventory so everything is current. 

Enter a Given Vendor’s Credit

What happens if a vendor gives you credit for non-refund reasons like a promotion? You can store that credit by doing the following:

• Click “New.”
• Pick “Vendor Credit.”
• Choose the vendor in the dropdown menu.
• Enter the credit details.
• Click “Save.”

Deposit the money to that account by doing the following:

• Click “New.”
• Choose “Bank Deposit.” 
• Select the account where you want the money to go from the “Account” dropdown menu.
• Fill out the various fields in the “Add Funds to this Deposit” section.
• Click “Save.” 

Apply Credits to a Bill

You may already have credits with a specific vendor and want to add them to a current bill. Here’s how to apply vendor credit in QuickBooks online: 

• Click “New.”
• Pick “Pay Bills.”
• Choose which bill you want to apply the credit to (you’ll see available credits in the “Credit Applied” field).
• Complete the remaining fields.

Record Vendor Credits 

Your business may have vendor bills in various states, with prepayments being one of them. Prepayments are common when working with vendors. There are two ways to record these prepayments: “Accounts Payable” or “Asset Account.” 

Using Accounts Payable, you’ll:

• Create a check for the vendor.
• Click “Write Checks” from the “Banking” menu.
• Enter the vendor and payment information.
• Go to the “Expenses” tab.
• Enter “Accounts Payable” from the “Account” column.
• Choose the vendor.
• Click “Save.”

To record the bill, you’ll:

• Click on “Enter Bills” or “Recieve Items” (if you want to record the bill later) from the “Vendors” menu.
• Enter the information.
• Save.

To apply the prepayment to a bill, you’ll:

• Click “Pay Bills” from the “Vendors” menu.
• Choose the bill you want to prepay.
• Click “Set Credits.”
• Ensure that prepayment is checked.
• Click “Done.”

Using Asset Account, you record prepayments by following these steps:

• Find “Chart of Accounts” under the “List” menu.
• Click “New” in the “Chart of Accounts” menu
• Go to the “Other Account Types” menu. 
• Choose “Other Current Asset.”
• Click “Continue.”
• Enter the prepaid goods as the “Account Name.”
• Click “Save & Close.”

You’ll then write a check to your vendor:

• Go to the “Banking” menu.
• Click “Write Checks.”
• Enter the vendor information. 
• Go to the “Expenses” tab and pick the OCA account you just made.
• Click “Save & Close.”

When It’s time to enter and pay your bill, you’ll:

• Click on “Enter Bills” from the “Vendors” menu.
• Choose the “Expenses” tab and pick the OCA Account.
• Put in the amount of the prepayment as a negative value.
• Enter what products you’re buying in the “Items” tab.
• Click “Save & Close.”
• Select “Pay Bills” from the “Vendor” menu.
• Pick the bill and then click “Pay Selected Bills.”

Let Fourlane Walk You Through the QuickBooks Vendor Process

If you’re still unsure how to do something in QuickBooks with vendor records, Fourlane can help. We have many QuickBooks consultants that can walk you through the process and answer any questions.

Our consultants can help with all aspects of QuickBooks. Contact us to learn how we can help you use QuickBooks to its full potential.