Applying Credit to Current Bill in Accounts Payable

Perhaps you purchased something from a vendor and they no longer carry that item. You already issued payment on their invoice and the vendor is going to credit you toward you next purchase. How does that credit get recorded in the system and then applied to a later invoice from the same vendor?

1. Input a negative invoice into AP for that vendor in the amount of the credit. Apply it to the GL account that was related to the purchase.
   
   
2. When the next invoice comes in, the system will apply the credit. If the credit is greater than the amount due, a voided check will print and the remaining credit will exist until the next invoice.
   
   
3. When the credit is less than the amount due, the system will print a check for the difference owed and all invoices will be marked as paid.

Still can't find the answers you're looking for? Contact our team - we can help!