Vendor Credit

Hi there, Catz!

Welcome! I appreciate you reaching out for assistance with your vendor credit transaction. It's great that you noticed the issue and took the initiative to seek help. Identifying and addressing such matters promptly can save you time and ensure accurate financial records. I'll guide you through the process.

What you want to do is find the bill that should be linked to that credit. If it's unpaid, just mark it as paid. The credit will appear in the process and can be selected to pay the bill. However, if the bill has already been paid, the credit is considered a duplicate and must be deleted.

1. Go to the Vendors menu, then select Pay Bills.
2. Select the correct accounts payable account from the dropdown.
3. Select the checkboxes of the bills you want to pay from the table.
   Note: To unmark or mark all the bills in the list, select Clear Selections or Select All Bills.
4. Set any credit that you want to apply to the bills.
5. Click Save & Close.

If you have any other concerns, please don't hesitate to go back to this thread. Take care and have a good one!

I'm sorry, I didn't make myself clear. There is no bill to post the credit to. There are no new bills to post the credit to. I need to clear the credit.

The payment was made without a bill, it was made as a check and somehow created a credit.

I hope that makes sense.

Good morning, @Catz. 

Thanks for reaching back out and explaining more about your issue with a vendor credit. 

If you're wanting to clear the credit, I recommend creating a bill then linking the payment to it. From there, that should clear the credit. 

However, before doing those steps, you'll need to consult with your accountant to make sure that's the best solution for your business. They may have a better option to resolve and clear this out rather than my suggestion. 

Let me know what your accountant recommends after speaking with them. I want to ensure that you get back to running your business as soon as possible. Bye for now! 

@Catz 

If it's showing as a credit under the vendor then the payment must have been assigned to Accounts Payable (A/P).  Since you never entered a bill, that means that you never posted the expense (or possibly inventory asset).  You can either assign the appropriate expense/asset account to the payment or create a bill with the appropriate expense/asset account and apply the credit to it.  If you change the payment, the expense/asset will post as of the payment date.  If you create a bill, the expense/asset will post as of the bill date if you're on accrual basis.      

Rainflurry, is this ok to do? The issue is dated in June. I don't want to mess up the books.

@Catz 

I'm not sure how organized your business is.  If your business closes out each month beyond just bank and credit card reconciliations (income, expenses, A/R, A/P, inventory, accruals, etc.) then create the bill and date it in the current period.  Then apply the credit.  That will post the expense and the change in A/P in the current period with no impact on June.  

If you're a business that just does a minimal month-end close (reconciles bank statements and credit cards, for example), then you may want to just change the account on the payment made in June from A/P to the appropriate expense account.  That will add the expense and increase A/P as of June.  Or, create a bill that is dated to accurately reflect when the expense was actually incurred and then apply the credit to it.