We paid a vendors travel and then our customer also paid it. How do I invoice the vendor for the over payment?

Hi myofficefod,

How did you record the customer payment for the vendor expense? Did you create a billable expense to your customer? If so, these are the two recommended ways how you can create a vendor overpayment. The first one is by depositing the funds directly to the bank deposit using the expense account. The other one is by creating a vendor credit.

To deposit the overpayment using the expense account:

1. Click on the Plus icon.
2. Select Bank Deposit.
3. Choose the Payment account and enter the Payment date. 
4. In the RECEIVED FROM column, select the vendor. 
5. In the ACCOUNT column, choose the expense account.
6. Enter the description, payment method, and the amount.
7. Click on Save and close.

To create a vendor credit:

1. Click on the Plus icon.
2. Select Bank Deposit.
3. Choose the Payment account and enter the Payment date. 
4. In the RECEIVED FROM column, select the vendor. 
5. In the ACCOUNT column, choose Accounts Payable.
6. Enter the description, payment method, and the amount.
7. Click on Save and close.

Apply the vendor credit to a bill:

1. Click on the Plus icon.
2. Select Pay Bills.
3. Choose the deposit and enter the amount.
4. Click on Save and close.

Let me know if you have any other concerns. Have a great day!