Q - How do we apply a credit in AP (Accounts Payable) to a vendor invoice? For instance, we have the following:
A - When you print a check, please select the credit, as well as the voucher to be paid. Then the check will be deducted by the credit amount. Therefore, it is more accurate to say that the credit applies to the check, instead of the voucher.
In your case, you have more credits than vouchers, therefore, you would not print the check until you have more vouchers to be added from the vendor to cause a debit balance. There’s a risk that you may accidentally pay the voucher without applying the credit while you wait. To prevent that risk, you have two options:
- You can “Permanently” defer invoice for payment by going to AP -> Processing -> Payment Preparation -> Defer Invoices From Payment. Of course, if you are ready to pay, you need to take it out of the defer status.
- You can flag the vendor status as "Hold" payment until the vendor account becomes a debit balance. See sample screen below:
If you need your AP credit to be refunded back to you, please give us a call for instructions on how to handle this scenario.