Record Vendor Overpayments

Best practice to record vendor overpayments:

1. Create a holding account.
2. Write a check.
3. Enter a vendor credit.


To create a holding account:
1. Navigate to Setup > Accounting > Manage G/L > Chart of Accounts > New ( Administrator ) .
2. In the Type field, select Other Current Asset.
3. If you use account numbers, enter a number in the Number field.
4. In the Name field, enter Temporary Holding.
5. Click Save.

To write a check:
1. Navigate to Transactions > Bank > Write Checks ( Administrator ) .
2. In the Payee field, select your vendor.
3. On the Expenses subtab, in the Account column, select your Temporary Holding account.
4. In the Amount column, enter the overpayment amount.
5. Click Add.
6. Click Save.

To enter a vendor credit
1. Navigate to Transactions > Purchases/Vendors > Enter Vendor Credits ( Administrator ) .
2. Select the Vendor.
3. On the Expense subtab, select your Temporary Holding account.
4. In the Amount column, enter the overpayment amount.
5. Click Add.
6. Click Save.