Supplier vs Credit Card Credits (QBO and Buildwise)
A credit card credit and a supplier credit sound alike, but they are two different things in QuickBooks Online. The difference comes down to one question: who gave you the credit, and where does it apply?
- A supplier credit is money a vendor owes you. It lowers what you owe that one vendor, and it applies to Bills.
- A credit card credit is money your credit card company owes you. It lowers your credit card balance, and it applies to credit card transactions.
Quick comparison
| Supplier credit | Credit card credit | |
|---|---|---|
| Who gives it to you | A vendor (supplier) | Your credit card provider |
| What it lowers | What you owe that vendor | Your credit card balance |
| Where it applies | Bills | Credit card transactions |
| Example | A trade gives you a $500 credit on a project. You apply it to that trade's Bill. | You return a $500 purchase from ABC Lumber on your Visa. The refund shows as a credit on the Visa. |
Supplier credit
A supplier credit comes from a vendor. Say one of your trades gives you a $500 credit on a project that is tied to a Bill. You apply that $500 credit to the Bill from that trade. This keeps your vendor balances and job costing correct.
Credit card credit
A credit card credit comes from your credit card provider. Say you return a $500 purchase you made at ABC Lumber on your Visa. The refund shows up as a credit on the Visa account. This keeps your credit card register and reconciliation correct.
How this affects your construction workflow
- Use a supplier credit when the vendor gives you a credit tied to a Bill. This keeps vendor balances and job costing accurate.
- Use a credit card credit when the refund goes back onto the credit card. This keeps the credit card register and reconciliation accurate.
How Buildwise decides
Buildwise looks at how the credit was paid, then sorts it for you:
- A credit (negative value) that was not paid by credit card becomes a supplier credit and applies to Bills.
- A credit (negative value) that was paid by credit card becomes a credit card credit and applies to the credit card account.
- A negative value entered with no payment info (no payment method, no payment date, and Paid is false) becomes a supplier credit.
Where to find a credit card credit
There are two ways to find a credit card credit:
- Go to your Chart of Accounts, search for the credit card, and open the account history.
- Go to Suppliers, find the supplier it is attached to, and look in that supplier's list of transactions.
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