Reversing a Liability (Decreasing the Vendor Balance)

AccountsPayableGuide > Accounts Payable > Paying Bills in Accounts Payable > Entering Adjustment Transactions > Reversing a Liability (Decreasing the Vendor Balance)

There might be times when you need to decrease a vendor balance. For example, if you made a payment to a vendor or need to make an adjustment to an incorrect balance.

To decrease your vendor balance:

1 In Accounts Payable, select Payment Tasks > Adjust / Pay Bills Manually from the left navigation pane.

If you use batch processing, select an active batch or create a new one.

The AP Adjust/Pay Bills window will open.

Click thumbnail to view larger image.

2 Select Balance Adjustment from the Transaction Type drop-down and enter the vendor information for this payment.

3 In the Vendor # field, type the vendor whose balance you want to decrease or use the Lookup to select them.

4 Select the Decrease Balance radio button in the Change Vendor Balance section of the window.

5 Complete the detail item grid for this payment by entering the GL Account and the amount to be applied.

The GL Account # you enter here is the opposing General Ledger account that will be affected by this transaction, not the liability account.

6 Select the Apply check box if the adjustment should be applied to the specified account.

7 Select Save to save the transaction.

If you want to add a comment to the payment or enter reference notes, refer to Adding Comments to Payments and Adding or Viewing Notes About This Bill.