Accouts Payble Debit Refund "What to do?"

[SWoodfin]

Accouts Payble Debit Refund \"What to do?\"

I have a vendor with a credit balance. The vendor has sent me a check and can't get the supplier ledger cleared out and get the check posted correctly. Can someone help????

 

[Solutionkid]

Re: Accouts Payble Debit Refund \"What to do?\"

If the vendor sent you a check, I suspect the vendor actually had a debit balance, as the normal balance with a vendor is a credit (you owe them).
Enter a speed voucher to the vendor's account for the amount of the check sent to you and use a G/L distribution to a "suspense type" G/L account, any account will do but you may want to check with one of your finance staff for guidance. The vendor's ledger balance should now be a net zero.
When the vendor's check is entered use G/L cash receipts to credit the same "suspense" account.