Purchase remittances and credits

Question

A major supplier regularly does not apply our payments as per our remittance advice.

Recently instead of following the remittance advice they created a credit for an unallocated amount.

I really can't think how to record this and eventually get the account to reconcile.

If we don't pay on time we don't qualify for the rebate they give us, so I can't just ignore this.

Thanks

Brenda

earl_hd · Answer

Hi Blhiggins,Thank you so much for your detailed post and welcome to the Community Forum!I apologize for the delay in responding. To resolve this, please consider the following steps:Create a Supplier Credit:

Go to the "Purchase" command center.
 Select "Spend Money."
 In the "Pay from Account" field, choose the bank account from which you made the payment.
 In the "Supplier" field, select the major supplier.
 In the "Amount" field, enter the unallocated amount for which the supplier created the credit.
 This will allow you to apply the credit to the unallocated amount.

Record Payment Against Credit:

Once the supplier credit has been created, you can now record a payment against that credit to settle the outstanding balance.
 Go to the "Purchase" command center.
 Select "Pay Bills."
 In the "Supplier" field, choose the major supplier.

Reconciliation:

After completing the above steps, reconcile your bank account to ensure that it matches your actual bank statement. The transaction should now be correctly recorded and accounted for.

Please do let me know how you go on this.Regards,Earl

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