How to use a Credit Invoice for A/P

Credit Invoice for A/P

Credit invoices are entered the same as entering normal A/P Invoices, except with a C’’ as the last character of the invoice number. When entering a credit invoice the debit and credit posted to the Transaction file is normally just reverse of a standard invoice. The general ledger number asked of you by the system will be credited (normally an expense account) and Accounts Payable will be debited.

You can only issue a JEC or JED to a credit invoice manually. However, when preparing computer checks for a vendor and you select the pay all option, credit invoices are used. The amount of the credit invoice is subtracted from the total balance due and a check is prepared for the net amount. Do not enter negative amounts.

NOTE: When entering credit invoices for A/P, be sure the "Invoice Type" field is left blank. If there is an "S" or an "R" in that field, it will override the "C" for credit at the end of the invoice number and essentially cancel out the credit.