How to enter this credit

Question

I had entered a purchase invoice twice and I had not realised it. And consequantly, I paid this purchase invoice twice but luckily, my supplier found this and gave me a credit for this invoice and told me that I could pay less in the next payment. How to enter this credit and how to deal with this credit in system? The most importance is when I paid this invoice, I paid it together with many invoices in a big total amount in the same check. That is why I do not know how to do next. 
 
 Thank you very much!

Keith L · Accepted Answer

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.

Keith L · Answer

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.

Sage 50 Canada

How to enter this credit

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING