I think I understand. I am fine with using the bill method. 

So you're saying that even though there is a vendor credit (creating a -60.00 in the vendor expense table) and a deposit (also creating a -60.00 in the vendor expense table) that since they are in 2 separate categories (i.e. payroll invoice and accounts payable) that the report and actual expenses will work out correctly even though the "total" at the bottom of the vendor table is off because of the doubled credit from the VC and the deposit?