NOTE:  **FOR QB Online only – does not work for Desktop

To move your balance from the AR to the AP vendor you need to complete both parts below: 

Part One 

1. + New button

2. Under Customers: Receive Payment

3. Choose the customer name

4. Choose all the invoices that you will be using as a credit

5. Change bank to the AR to AP Transfer GL account

6. Save and Close

Part Two 

To show the credit on the Vendor bill 

1. Expenses>Vendor

2. Choose Vendor you are paying 

3. Click New transactions on top right and choose Vendor Credit 

5. Enter the date and a reference number and amount 

6. For Category choose Account AR to AP Transfer 

8. Enter your description and amount 

9. Save and Close 

1. You will now see a credit for that vendor’s account that you can use towards open invoices.