Creating Incoming Payments from Vendors 
Use the procedure to create an incoming payment from a vendor based on an A/P credit memo, or on an A/P invoice and A/P credit memo when a partial amount is returned.
This might occur when you return to the vendor (completely or partially) goods you purchased and paid for.
Caution
You cannot create this type of document through the payment wizard.
Procedure
Choose
Banking 
Incoming Payments Incoming Payments 
.In the Incoming Payments window, choose Vendor and specify the vendor from which the payment is received.
The table displays open documents and, if you selected Display all Transactions, transactions that are not reconciled yet:
A/P invoices, A/P down payment invoices, and manual journal entries in which the vendor is on the credit side are presented with a negative sign.
The following are presented with a positive sign:
A/P credit memos not based on A/P invoices
Manual journal entries in which the vendor is on the debit side
Outgoing payments that are not based on invoices
Amounts that were deposited to the vendor and not to the bank
Checks for payment
NoteDown payment requests and opening balances transactions are not represented in the table.
End of the note.
Select the documents on which you want to base the incoming payment and change the Total Payment amount as required.
Choose
(Payment Means) to open the Payment Means window, and specify the payment details.Choose OK and then Add.
Result
The open amounts in the base documents are updated according to the payment amount.
If the base documents were fully paid through the incoming payment, the documents are closed and their journal entries are automatically reconciled.
If the base documents were fully paid, but the payment amount did not match the definition made in the Incoming Amt Diff. Allowed or Incoming % Diff. Allowed field of the Currencies - Setup window under
Administration Setup Financials Currencies , the following occurs:Differences caused by a payment amount larger than the amount due (gain) are posted to the account, as defined in
Administration Setup Financials G/L Account Determination
Sales General Overpayment A/R Account .Differences caused by a payment amount smaller than the amount due (loss) are posted to the account, as defined in
Administration Setup Financials G/L Account Determination
Sales General Underpayment A/R Account .
Example
You received from your vendor an A/P invoice for 994.3 (LC). You paid the exact amount, and then returned the goods and received an A/P credit memo for 994.3 (LC). You entered the A/P credit memo. The vendor is about to pay you 994.5 (LC) in cash. The table in the incoming payment document for this vendor is displayed as follows:
Document |
Balance Due |
Document Type |
Total Payment |
1234 |
994.3 |
PC (=A/P Credit Memo) |
994.3 |
The payment amount is actually 994.5 (LC). The amount defined in Administration Setup Financials Currencies Incoming Amt Diff. Allowed
is 1 (LC). The journal entry created by the payment will be:
G/L Account/BP |
Debit |
Credit |
Cash on Hand |
994.5 |
|
Overpayment A/R Account |
0.2 |
|
Vendor |
994.3 |
The journal entries of the A/P credit memo and the incoming payment are reconciled, and the A/P credit memo is closed.