Subscription payment to supplier and a credit received from supplier.

Hi Margaretf 

Thanks for your post. One way to record this would be as a supplier prepayment. I'll give the help article to guide you through recording these transactions but basically you would:

1. in Enter Purchases record a $0 bill for your coffee supplier
2. in Pay Bills tick Include Closed Purchases and apply a $50 payment to that $0 bill
3. in Enter Purchases record a credit for the $5
4. when you make your monthly purchase, say $25, record a bill in Enter Purchases
5. go to Purchases Register>>Returns & Debits tab, select the $50 debit note and click Apply to Purchases
6. when the Settle Returns and Debits window opens change the debit amount to the actual purchase amount, say $25, and apply to the purchase bill
7. in this example you would be left with a $30 credit with this supplier

Supplier prepayments 

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.