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Re: Negatives in Accounts Payable

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John,
The problems with just entering a negative payable stem from problems in keeping cash and accrual books. Basically every accounts payable needs to have related expense accounts (fertilizer, chemicals, etc) so that when you pay the payable the program knows what accounts to use on your cash books. In your case I think the following will work quite well:

1. When you get a credit back, go into the Payable Payment area and apply the payment to an outstanding invoice.
2. Next use the Purchase Option for Expense and Other Payments and enter the amount as a negative number and select the appropriate account (if this is additional discounts, select your discount account if it relates to a billing error select the account that the original bill related to).
3. Next select the appropriate enterprise to apply the credit to. The easiest way of doing this is to select your "Overhead" enterprise in equipment. This will spread the credit between all of your enterprises (this isn't the most accurate but it should be good enough).

This will work well as long as you have outstanding invoices to apply the credit to. If you don't then instead of treating this as a payable payment, use the Other Asset Purchase Option and enter the amount as a positive to a prepaid account. With the prepaid account select the same expense account as you'll select in the Other Expense area as the offsetting account.

I hope that this helps!

R. Scott Nusbaum CPA
Farm Works Software
SubjectAuthorPosted

Negatives in Accounts Payable

John May 01, 1997 12:00AM

Re: Negatives in Accounts Payable

R. Scott Nusbaum - Farm Works Software May 01, 1997 12:00AM



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