Vendor Balance

@nilousheybani  The open balance is the total amount of money that you owe to a particular vendor.

The overdue balance is the total amount of money that you owe to a particular vendor, that was not paid prior to the established due date.

The only time these two balances should be the same is when all amounts owed to said vendor are past due.

If you want an explanation of the journal entry itself, and whether it should be deleted, you may want to post an image of it, or at least describe the accounts involved in the journal entry.

@nilousheybani  Actually, scratch a bit of my last post; may be a good idea to say what accounts are involved in the journal entry in general.

I'm not at all sure why the overdue amount would be higher than the open balance; that is odd, unless QBO is treating the open balance amount as 'the balance that is not yet past due'.

Hi @FishingForAnswers 

The JE is a debit to Lease acquisition costs and credit to AP and was reversed a few months after that. When I try to go to the pay bills - I notice a vendor credit of the amount of the difference between the open and overdue balance but I am unable to apply a credit to a journal entry.

The overdue payment looks like its the open balance + JE amount @FishingForAnswers 

@nilousheybani  Mm, well, generally it's best to work through QB's actual functions; JEs are great and all, but in QB, they should only be used when there isn't already a suitable function. You're bumping into one of the limitations of JEs here.

Most of my companies are cash basis, so take this with a grain of salt, but it sounds rather like you could resolve with by creating a proper bill to apply the open credit to.

There are a couple other regular users here who are more familiar with those functions; they'll probably drop in with some more thorough advice if they see this thread still active.

@nilousheybani 

"The overdue payment looks like its the open balance + JE amount"

That makes sense because a JE that credits A/P will show in both the overdue payment total as well as the open balance.  However, the reversing entry that debits A/P only reduces the open balance total, not the overdue payment total.  You should be able to go to New > Pay bills, select the JE that credited A/P and under 'Credits Applied', the reversing entry should populate an enable you to apply the credit.  Is that not what you see?   

No - it will not allow me to do that because its a journal entry - this is the notification that comes up when I try to do that 

@nilousheybani 

You're getting that message because you're selecting 'Schedule payment' on the pay bills screen.  Click the arrow next to 'Schedule payment' and click 'Save'.    

oh wow it worked!! thank you so much!!