how to use a credit note to pay a bill

Question

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

Agate · Accepted 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!

Agate · Answer

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!

Sage 50 Canada

how to use a credit note to pay a bill

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