Hi Sylviesu,

If your vendor gives you credit,  you can enter it as a Prepayment as a Payments Journal. 

Open the Payments Journal.  If you do not see the Prepayment Account box on top of the Total box, go to Payment in the menu bar and select Enter Prepayment.

When you make this entry, it will credit your bank account and debit your Purchase Prepayments Account. 

Since you are not making any real prepayment to your vendor now,  you will then create a General Journal entry to debit your bank account back and credit the expense account and tax account (the expense account used in your duplicate invoice)

After that, when you have any future purchase invoice with this vendor, you can apply the prepayment to the invoice.

Hope this helps.

I dont really understand. I found the "enter prepayment" but there is no such invoice in the list.  How will I make an entry debit bank and credit expense account in that window? Could you explain it more? Thank you very much!

Hi SylvieSu,

This is for future invoice that you may get from this vendor.  As described from your question, that vendor took this extra money from you as credit and allow you pay less on the next payment.

When you create the prepayment in the payment window, you do not have to choose any invoice.  You only need to enter the balance to the prepayment box.  It will then debit the prepayment account and credit the bank account.  

You do not use the Payments Journal to make the reverse entry of debiting the bank and credit the expense account.  You use the General Journal.  You can find the General Journal in the Company module.  The purpose of this entry is to reverse the money credited from the bank account in the prepayment entry above as you are actually not making any real prepayment now.

Hope this helps.

OK, you mean that I can also use Gernal Journal. Yes? And then Debit bank, credit this expense?

Hi Sylvie,

You are correct, after you make the prepayment entry.

Hope this helps.

YES! Exactly!! I DID IT!! Thank you very much! High appreciated.

Sylvie

Keith

can you not also create a purchase invoice, with negative amounts per the original invoice

  debit ap, credit expense/taxes

and then select that negative invoice when paying other invoices to this supplier, reducing the cheque to be written ?

Oh, yes. You are right. Thank you very much anyway!!

Hi Crbookkeeping,

There is always more than 1 way to accomplish the same result.  Your method also works.  

Thanks.  

Hi Crbookkeeping,

There is always more than 1 way to accomplish the same result.  Your method also works.  

Thanks.  

Yes - the better way would have to be to re-enter the duplicate invoice exactly as before but with DUP in front of the invoice nbr and all amounts in negative amount. The expenses account nbrs would be identical and the invoice date would also be identical. This way on the next payment you would select this credit invoice and it also explains exactly what happened previously. I do wonder tho why you did not get an error message saying this invoice number was already used.