how to use a credit note to pay a bill

SOLVED

hello all,

we have a credit note recorded for a vendor. So the vendor owes us cash and this is because we paid the same bill twice in error. I now have a new bill to pay for this vendor which i have recorded in the purchase journal as a bill to be paid in 30 days. 

now i need to record the payment but i want to use the credit note to do this since my balance in the vendor aged detailed report is a negative amount. 

how to I record this? 

any help is appreciated

thank you

  • 0
    SUGGESTED

    Hi Gymcat:

    If you have the credit note and the invoice owing posted as a pay later then all you do is go to the payments screen, select the vendor to pay  and the credit note and invoice will display on your screen. Select the invoice and credit note for payment and the amount owing should show near the bottom right hand corner of your payments screen. From there print/post your cheque/payment. If there is a credit balance you will have to hold it for payment until until another invoice for that particular vendor is payable or request a payment from the vendor.

    Hope this  helps!

  • 0

    Hi Agate, thank you for your advice. When I open the payment journal with the vendor, the credit note ( a negative amt) and the new bill show up. But what selection do i use in the PAY FROM at the top of the page? I have already paid this so the bank account is empty:)

    so here is what i have done maybe this is wrong:

    first I posted an entry to the vendor using the purchase journal to show the overpayment . I entered a negative amount. so the a/p is debited and the cogs is credited. this created the credit note.

    second i recorded the payment on the same date in the payment journal using MAKE OTHER Payment, the cogs is debited and the bank is credited.

    Now i need to pay the new bill for that vendor. in the payment journal, the payment journal shows the credit a negative amount and the bill a positive amount. if i select the credit and the new bill, the a/p is credited but the bank is debited. still showing a balance since the credit is larger than the new bill. this is not correct, the balance of cash is not at the bank, it is still with the vendor. 

    maybe i need to start over ? 

    any advice is appreciated 

    thank you,

  • +1 in reply to Gymcat
    verified answer

    Gymcat:

    Please note my last line:  

     If there is a credit balance you will have to hold it for payment until until another invoice for that particular vendor is payable or request a payment from the vendor.

    To begin with enter your credit (overpayment) and the invoice for payment in the purchases screen as pay later. When you receive your next invoice from your vendor enter it as a pay later. When there is a sufficient amount to cover the credit note and make a payment, then go to your payments screen and make your payment.

    Hope this  helps!

  • 0 in reply to Agate

    thank you great tips!

  • 0 in reply to Gymcat

    H Gymcat, if the above suggested answer helped, please do mark it as verified White check mark for the benefit of others in this forum :). Thank you!

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