I received a credit from a vendor. I went in to post a purchase from same, however when I tab out the payment, my vendor aged is not accurate. If I dont tab it out, vendor aged is correct, but the purchase amount is still showing as owing when I open this vendor to make a payment. I have done pre-payments from customers without incedent, but the credit from my vendor is being difficult.

Hi there:  How did you record the credit that you received from the Vendor?  Did you record it as a credit note in the Purchases window?  If so, when you post another purchase from the same vendor you should be able to "net" the two amounts and if there is still a remainder to be paid, then you can do the payment through the Payments window.  I don't think you should have recorded the credit received from the Vendor through the Payments window.  If you did, that may be the problem but I'm not sure of that.      Rita Deering

Tks for such a quick response. Actually, I put the credit into the purchase journal... but with a negative balance. Then a seperate bill came and although they were from the same company, they are separate accounts. Therefore they cannot be netted together. Now I am trying to post and pay a bill that should be just deducting from the credit amount, but the reports are not accurate.

Example: NSP gave us credit for 400. I posted as -400. to NSP in my purchase journal. Then we got a bill for 60. I posted the bill in my purchases under NSP. I checked my vendor aged and it shows -340. When I opened the payment journal and tabbed out the 60. payment, and posted it, the vendor aged is now showing a -400. balance again....Help.

Hi there:  That is correct.  You had a -400.00 credit and a +60.00 which would then be a net total of -340.00.    However, when you went in and tabbed out the 60.00 payment (was it a Cr. to Bank and a Dr. to A/P?  Did you actually do up a cheque for $60.00 to pay that invoice?), you negated the +60.00.  Therefore the account is back to showing the -400.00 again.  Which would be correct.

I'm not sure why you are saying they cannot be netted together.  At first you said they were from the same company but Separate Accounts.   Then you say that you posted both the credit and the bill to the same account,  "NSP" and that the vendor aged for that account showed -340.00.   It sounds to me like both items have gone through the same account, not different accounts.   If they are both in the same Vendor account, then they will "net" and show -340.00 and you don't owe them anything.  You shouldn't try to "net" the 60.00 bill through the payments window if you are not actually paying them a cheque.  Which you shouldn't do of course because you still have the -340.00 credit with them.  There is no need to tab out the 60.00 until such time as you end up having enough bills from this vendor that you actually owe them some money.    Rita Deering

 

I think that the problem can be resolved if I put the credit into NSP as a Pre-Payment, Instead of a credited amount. (Same thing just different posting). Then as I post and pay another bill, I can deduct from the pre-pay and my journal entries will reflect the credit getting smaller with each payment. Thanks again for your help.

You can do it with negative invoices.  When you "pay" the $60 invoice, you "tab out" the +60, but you also need to make a "partial payment" on your credit note and enter -60 on the $400 credit note.  The net payment will be 0, because you're not actually paying anything, you are using the credit note (or a part of it), and no journal entry will be booked (because there is no payment).  The net result will be that your $60 invoice will show as paid and the $400 credit note will have a "unpaid balance" of $-340.