Applying A/P Credits.

Question:

When my accountant makes general journal adjustments to correct AP account for checks not cashed for the year I end up with a bill with a negative amount and a bill with a positive amount listed on my bills to pay window. When making the journal entries the vendor is noted with each AP entry. How do I get these entries to cancel each other out?

Answer:

The first thing that you need to do is go into the Pay Bills Screen (Vendors - Pay Bills), make sure that the button for show all bills is selected. Hopefully, you have a bill that shows up for the vendor and amount in question (One of the bills that your accountant adjusted). If so select that bill, and select "Set Credits". The negative amount that your accountant entered should show as an available credit. Apply that credit to the bill that he adjusted out and you should be set!