Software: QuickBooks Desktop accounting software
Enter Credit-Bill when received a Credit Note from the vendor (supplier), the transaction debits the accounts payable and credit expense. If the vendor issue you a refund instead of offsetting against the outstanding bill, then a Make Deposit or a General Journal has to enter to record the money received. The journal debits the bank and credit the accounts payable account. You need to select the vendor when using the accounts payable account in a general journal; so it will update the creditor sub-ledger and ageing report.
The credit-bill remains in the accounts payable ageing report until you do a pay bill to offset the credit-bill against the Deposit or General Journal which you have created earlier.
For foreign currency vendor, the exchange rate on the general journal and the credit-bill has to be the same to prevent exchange error in reporting.
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Software: MoneyWorks Desktop accounting software
You record the Back Charge into the MoneyWorks via Purchase Invoice when received the bill from the Client (your main-contractor). Back Charge is a project related expenses such as damages, work which has done on your behalf, etc. The purchase invoice which you recorded debits the Back Charge and credit the Accounts Payable account.
MoneyWorks does not allow you to contra the purchase invoice (accounts payable) directly with the outstanding sales invoice (accounts receivable), a ‘Clearing Account’ (a bank account type) is used to offset the two.
Then, use the payment feature in MoneyWorks to pay the purchase invoice with the clearing account and a receipt to receive the contra amount of the outstanding sales invoice into the clearing account. The payment debits the Accounts Payable and credits Clearing Account, whereas the receipt debits the Clearing Account and credits the Accounts Receivable. The Clearing Account should not have any balances as a result of contra between receivable and payable.
Software: Intuit QuickBooks accounting software
You did a few general journal transactions with the Accounts Payable account, but these journal transactions did not capture in the Vendor (Supplier) Balance report. Why?
The Accounts Payable is part of the Current Liabilities, which is a ‘Control’ accounts capturing all the bills and payments related to Vendors, whereas the Vendor Balance Detail Report is like a sub-ledger, sum up the transactions by each vendor.
Based on the relationship between the accounts payable and the Vendor Balance report, unless the account used is not an account payable type, any transactions which tagged with the account will show in the report.
If you preferred using the General Journal than entering Bill to record amount owing to the Vendor may have created the ‘accounts payable’ as a Current Liabilities type of account accidentally instead of an Accounts Payable type. Hence, it doesn’t capture into the Vendor Balance report due to wrong account type used. Although the account name (Accounts Payable) could be the same, the account type is different.
To resolve the problem, create a new account with the correct account type and amend the transactions if there is a mistake made. You should consult the accountant before you make any changes to the record as it may affect the financial report. QuickBooks may allow you to make changes to the database, but it does not imply that you can change it (Especially if the account has closed or transaction is in the previous financial period).