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Hi,
There was an extra payment on an invoice to a vendor, which's now, open in AP module (Vendor Transaction Inquiry). Instead of allowing us to apply that extra payment to the next invoice, vendor returned that full payment. We can't/don't want to void historical and open transactions. How we can best clear that open payment and enter return from the vendor in AP? We tried to create a return batch in a test company, it directly went to history - not letting us apply a portion of it to partially open payment. We tried to create a batch with a portion of the return to credit memo and the remaining to return transaction. After posting, Vendor Transaction Inquiry is not showing credit memo and the return is partially applied to and the remaining return is open now. Any help is greatly appreciated.
Regards
Thanks, Joe.
Yes, that's correct, entering a return transaction is a right procedure to record the receipt of funds. The only Issue I see is not voiding the fake invoice and letting it sit in the vendor record.
Thanks again for your post.
Regards
I would enter an invoice in AP for the full payment amount. Put lots and lots of notes as to why you're doing this (since it is going to be a fake invoice). Save and post.
Then apply the manual payment to this invoice. Now everything is in history and out of open.
Here's the fun part to get it all right:
Enter a Return transaction in AP for the whole payment amount. On the right side of that screen, use the Cash or Check field and enter in the same payment amount. You'll get prompted to enter a transaction or check number, checkbook ID and a date. Select the correct checkbook where the money was sent back to you and the date field should be the date the payment was returned from your vendor. Save and post.
This will get you back to $0 and show the money coming back to your bank account. This will also get your vendor history balances all correct too (amount paid, etc).
Also, you won't have to do any voids.
I hope this helps. Any questions, let me know.
Thank you.
Joe
Thanks, Lisa.
I highly appreciate the time and effort you put to answer my question. I also like the get-the vendor-to-zero-balance approach. In the giving circumstances, this would be the best to resolve the overly complicated situation.
Regards
Without seeing what is going on, it is hard to make any other recommendations. (I find that the tech document or the get-the-vendor-to-zero-balance approach covers the majority of situations.)
If you don't have a GP partner to check with, hopefully someone else on this forum can help with a more helpful solution.
Good luck!
Thanks for the detailed answer, Lisa.
Plan is to pay the invoice again for which vendor returned the amount. Since, the payment (plus a portion more than the invoice value) went thru initially successfully to vendor's bank account, higher management is not comfortable in voiding that manual entry of payment made. On the other hand, vendor didn't want us to apply that extra payment to any future invoice. That's the reason vendor returned the full amount back. Now, we just want a way around to apply that extra payment which's siting as OPEN in AP. Is there a way around?
I did go thru the link for payables cleanup, it's very helpful, however, doesn't a situation like we are in.
Regards
A few things come to mind in reading (and re-reading this):
-If the vendor physically returned the payment to you and the plan is to not release it again, you will want to void it in GP (otherwise it will remain outstanding for bank reconciliation purposes).
-Returns, credit memos, and payments have the same impact on the vendor's balance and cannot be applied to each other.
-When things get overly complicated and the vendor is kept current with just a few transactions, I find it is often easier to get the vendor's balance to zero by voiding what needs to be voided (again, to keep bank reconciliation correct), enter a debit or credit memo to get to zero, apply everything so it all moves to history. Once the vendor is truly $0 balance with nothing in WORK or OPEN, re-enter the current open invoices that are needed for the new payment. (If everything was properly accounted for previously, the adjusting entries should all net to zero and have no impact on the GL.)
Here is a link to information on payables cleanup that covers most situations that come up:
Void transactions in Payables Management - Dynamics GP | Microsoft Docs
[There are many moving parts in this - vendor detail, relationship with other modules, etc. - that make it a good opportunity to reach out to your GP Partner who is hopefully familiar with your specific environment/configuration.]
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