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:
- Click on the Plus icon.
- Select Bank Deposit.
- Choose the Payment account and enter the Payment date.
- In the RECEIVED FROM column, select the vendor.
- In the ACCOUNT column, choose the expense account.
- Enter the description, payment method, and the amount.
- Click on Save and close.
To create a vendor credit:
- Click on the Plus icon.
- Select Bank Deposit.
- Choose the Payment account and enter the Payment date.
- In the RECEIVED FROM column, select the vendor.
- In the ACCOUNT column, choose Accounts Payable.
- Enter the description, payment method, and the amount.
- Click on Save and close.
Apply the vendor credit to a bill:
- Click on the Plus icon.
- Select Pay Bills.
- Choose the deposit and enter the amount.
- Click on Save and close.
Let me know if you have any other concerns. Have a great day!