Enter in a Credit Memo.

What happens with the credit sitting in AP??

The quick and easy way: Do a AR Cash Receipts, Customer "Cash", go to Lines and do a GL Distribution and use the GL Account used when you cut the check.

Joe

The quick and easy way: Do a AR Cash Receipts, Customer "Cash", go to Lines and do a GL Distribution and use the GL Account used when you cut the check.

Joe

Yes, do what jnelsonut says.  However, I think you are saying you have a credit in the AP module for the vendor?  If so, you can create a Manual Check, use check number APP (or APP1, APP2, etc) to create a zero dollar check, select the open credit, and create a second line that is just GL distribution for the offsetting amount, to the GL account used in the AR Cash Receipt above.