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,

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!

thank you great tips!

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

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

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