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Transfer and apply credit from one vendor to another

To transfer available credits from an existing vendor to another, transfer the amount (from existing vendor) as credit to a Clearing account and debit the amount from the Clearing account to the other vendor.

Detailed instruction

To transfer available credits from an existing vendor to another, transfer the amount (from existing vendor) as credit to a Clearing account and debit the amount from the Clearing account to the other vendor.

Step 1: Create a clearing account

Step 2: Create a journal entry to move the credit from the existing vendor to a wash or clearing account.

  1. From the Company menu, select Make General Journal Entries.
  2. On the first line, credit Accounts Payable with the amount to be transferred. In the Name column, select the vendor from whom the credit is coming.
  3. On the second line, debit the Clearing account created in step 1 with the same amount.
  4. Click Save & Close.

Step 3: Apply the credit to the General Journal Entry created as an unpaid bill

  1. From the Vendors menu, select Pay Bills.
  2. Select the bill created by the journal entry (It will appear without a due date).
  3. Click Credits, select the credit and click Done.
  4. Click Pay Selected Bills.

Step 4: Create a second General Journal Entry to move the credit from Clearing account to the vendor that will receive the credit.

  1. From the Company menu, select Make General Journal Entries.
  2. On the first line, debit Accounts Payable with the amount to be transferred. In the Name column, select the vendor who will receive the credit.
  3. On the second line, credit the Clearing account with the same amount.
  4. Click Save & Close.

The credit will appear on the vendor's account and can be applied to outstanding bills in the Pay Bills window.

KB ID# HOW21307
4/28/2017 2:49:41 PM
QYPPRDQBKSWS03 9138 Pro 2017 777381