Vendor credit and Unapplied Cash Bill Payment Expense
This question must have been asked and answered, but I just can't find exactly what I need. I paid an invoice in September. In October I received a check for a partial refund. I made the Bank Deposit using A/P as the account. I created a Vendor Credit also. I made a "payment" applying the credit to the deposit. Now my vendor shows the invoice (expense), deposit, and vendor credit. The Total for the vendor has the credit/deposit both included. I also get the credit appearing as Unapplied Cash Bill Payment Expense on my P&L. What am I doing wrong?!
Let's go back to the last bill payment you've created and get this fixed in no time.
When applying a credit to a deposit, you'll need to enter the amount under the CREDIT APPLIED column, not PAYMENT. This is because we need to offset the available credits for that vendor, and not to enter a new payment.
You can check the screenshot below for your visual reference.