Microsoft Dynamics GP (Archived)

Voiding a partially applied payment to a Creditor using Payables

(1) Share

Report

Posted on by Barry McGivern

Hi Community,

We have the following scenario

Creditor issues an Invoice for £1000
We issue a Payment for £1100 (as we will shortly spend the £100 on another invoice)
We use Apply Payables Document to mark the £1000 as paid on the invoice
Subsequently we decide we will not need to spend the additional £100 and we ask the Creditor to send the £100 back to our bank account.

What is the best way to manage this in Dynamics GP?

As always thanks in advance for your help,

Barry

*This post is locked for comments

All responses (5)

Answers (1)

Verified answer

L Vail 65,271 on at

Like (1)

Report

RE: Voiding a partially applied payment to a Creditor using Payables

Barry,

You can configure the system so that it will automatically create the Customer/Vendor link if that will help. Otherwise, enter a bogus invoice to apply the left over 100 to, and apply it. Then, enter a Refund transaction in payables and put 100 as the Check Amount. This 100 will carry over to the Checkbook and you will not need a Customer.

Kind regards,

Leslie
MattPaulen 6,912 on at

Like (0)

Report

RE: Voiding a partially applied payment to a Creditor using Payables

I like Leslie's idea because you then know you have a receivable incoming.

If you don't want to go that route, you could potentially still do a bogus invoice to wash out the $100 credit in AP and then upon receipt enter the transaction as a Check in the Bank Rec module through the Bank Transaction Entry window. Use the Option Enter Receipt, Type Check. Then when you deposit it at the bank, you'd use the Bank Deposit Entry window to record the deposit.

You'd want to use some type of suspsense/clearing account to offset the bogus invoice/bank trx.
Suggested answer

Community Member on at

Like (0)

Report

RE: Voiding a partially applied payment to a Creditor using Payables

support.microsoft.com/.../866374
Barry McGivern on at

Like (0)

Report

RE: Voiding a partially applied payment to a Creditor using Payables

Hi Leslie,

Many thanks for the quick reply.

Is there any other way that we could deal with this without using the Customer/Vendor Consolidation feature? I ask because we have to setup each Customer/Vendor link separately.

Thanks,

Barry
Suggested answer

L Vail 65,271 on at

Like (1)

Report

RE: Voiding a partially applied payment to a Creditor using Payables

I would probably use the Customer/Vendor Consolidation feature and create a 100 receivable against which I can credit the refund. The process does this

It creates a bogus invoice in payables

It applies the 100 unapplied payment to the bogus invoice

It creates an invoice (receivable) in sales

So now your A/P is zero and you are showing a receivable against which you can receive the 100 refund.

Kind regards,

Leslie