- Create a Credit Memo for the unpaid balance of the payable.
- Navigate to Accounting Home and under Cash Out click Payables (Vendor Invoices).
- Click the Payable that you would like to create a Credit Memo for (or just create a new Payable from scratch).
- If creating the Credit Memo from an existing Payable, on the Payable page click Clone w/ Lines, enter a date, and on the Edit screen click Save.
- On the Payable page, in the Payable Lines panel, click the Mass Add/Edit Rows button.
- On the Payable Edit page, edit the amount to a negative value.
- Click Save & Post.
- On the Payable page click the Apply Credit Memo button.
- Click the arrow beside a Payable and click Save & Complete.
The transactions created when posting a credit memo are a credit to the GL Expense Account selected on the payable line, and a debit to the AP Control Account.
Tip: To associate the credit memo with an original payable, place "Credit Memo for Payable number xxxxxxxxxx" in the Proprietary Payable Number field.