Hello. We are a non-profit organization. Currently, I have not been entering bills into the system. When I pay a bill, I've just been creating a check (or EFT payment) and posting it to the corresponding account. I have one vendor that we often send returns to and we will carry a credit balance until the next year when we reorder (Vacation Bible School supplies) and then the credit is applied against the next invoice. I also have a vendor that we recently overpaid due to a billing error on their part.
Considering these situations, should I enter bills for the few (maybe 8-10) vendors we routinely pay? How do I manage the credit memos issued by vendors when there is no bill?
I'm learning as I go and I am so thankful for this forum.