Payment made on Purchase Order

[Jackie77]

I have paid an invoice on a Purchase order before turning it into a bill. I have then changed it to a bill and now I have a "transfer from deposits" as a withdrawal and and the actual invoice payment as a deposit. How do I fix this?

[Mike_James · Accepted solution]

Hi Jackie77, no adjustment is required, that's how the program works. A purchase order as such makes no entries in the accounts, so when a payment is made against a purchase order  the bank account is reduced, and a "supplier deposit" (asset) account is increased. Once the order is converted to a bill (which increases accounts payable, and makes other entries) , the transfer deposit entry is made automatically, which reduces both the supplier deposit account and accounts payable.