Hi,I paid a vendor more than his invoice. Then the following month the vendor deducted the overpayment from his invoice. How should I record the overpayment? Thank you.

Thanks for reaching out to the Community, celdamarie.

To keep your records in tiptop shape, we’ll have to enter the vendor credit and then apply it to the bill. Here’s how:

1. Hit the New icon in the upper left and choose Vendor Credit under the Vendors section.
2. These actions will open another page where you can input the full details.
3. From there, type in the correct supplier in the Vendor field and enter the appropriate date.
4. Next, go to the Category/ Item details section and record your purchases.
5. Press the Save and close button.

After setting up the information, you can apply it to the bill. Let me show the step by step process.

1. Tap the New icon and select Pay Bills under the Vendors section.
2. Pick the bill you’re working on from the list and go to the Credit Applied field to see the available credit.
3. Fill in the remaining field boxes.
4. Choose Save/Save and close to keep the changes.

For additional information about the process, check out the Enter a credit from a vendor article. It provides an overview on how to track overpayment if you created a check or expense.

Stay in touch if you have any clarifications or need further assistance. I’m more than happy to answer them for you. Enjoy the rest of the day.