How to apply a credit to a Vendor Account

Question

Hi there, this is my first ever post, and I'm not that great with Sage 50, so please, bare with me! And if I posted this in the wrong group, I apologize! 
 We received a bill that was 2 months worth of charges, so we assumed we missed a payment and paid the amount owing. (Turns out, our previous payment was just late, so when the next invoice was issued, it showed 2 months owing, and not 1.) We figured out the error, and contacted the vendor. They quickly issued us a direct deposit payment to credit the account, but I have no idea how to apply this credit. Can someone help?

Richard S. Ridings · Accepted Answer

The simple answer is simple math. You entered a purchase invoice of $1000 to an account (eg. 5200). That increased the balance of 5200 by 1000 and you paid the vendor. Now if that was an overpayment of $400, then to bring down the amount owing by $400 you enter the same invoice, but with a negative $400 instead of a positive. Use the same accounts you posted to for the overpayment. 
 
Using Pay Later, the amount will sit as a negative on your Vendor Aged report, indicating you have overpaid. But since they put the money directly in the bank account, then change Pay Later to Paid by Cheque or if you have setup an EFT credit card, you can use it. This should put the money back in the bank. 
 
Or if the date of the credit invoice and date of the payment are different, then use Pay Later for the date of the credit purchase invoice and post a Payment (negative payments put money in the bank because positive payments take money out) on the date of the deposit (don't use a real cheque number, use the info from the deposit as the cheque number).

Sage 50 Canada

How to apply a credit to a Vendor Account

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