I entered a payment to one of my vendors as a standalone payment, not against any open invoices. It automatically put it against one of my expense accounts. I need to however apply this payment against open invoices and clear the expense account. That payment has cleared in our bank recon so I cannot just delete it and re-enter and apply to the open invoices. How do I correct this in arrears?
You can move it with a journal entry: debit A/P (include the vendor name) and credit the expense account from the payment. You should now see the credit available to apply to bills from that vendor.
You can move it with a journal entry: debit A/P (include the vendor name) and credit the expense account from the payment. You should now see the credit available to apply to bills from that vendor.
It appeared to work. Our expenses came down for the month (due to the payment artificially adding that expense); it didn't create a second $4k payment; it closed out the open invoices; and reduced our vendor balance to what it should be. So I think all is well, thank you!
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