How to transfer an AP balance to another invoice and/or vendor.

If an invoice was posted to the wrong vendor but the distribution was correct, I can simply move the payable balance with a journal entry.

I will open a new journal, and then select my AP GL account.  In this example, I want to take the balance of $100.00 away from the vendor it is currently listed under.  Because AP is a liability and has a normal credit balance, this means I need to input a POSITIVE amount in my journal entry. This may seem contradictory since AP inquiry shows a positive $100 for that invoice, but it is important to remember that liability accounts carry that credit as their normal balance and are therefore inversed.  See below- this line in the journal will net that invoice balance to zero.

Then, I must enter a line to put that balance onto another vendor. This will be put to the SAME AP account in the journal entry, but will be a NEGATIVE value in the journal, which will actually put the balance there to be paid when posted.  In my example below, I am moving the $100 balance from invoice 6456 over to invoice 8794.

A NEGATIVE entry ADDS value within AP, while a POSITIVE entry SUBTRACTS value within AP for these journal entries.

Once this is posted, I see that invoice 6456 now nets to zero and the balance has been moved to be paid under invoice 8794.

• Related Articles

• Paying an AR customer invoice with a credit memo from a vendor.

  This process is often used when you have a vendor account that is also a customer. If the vendor issues a credit to issue against an invoice on the AR side, you can apply the credit within the AP process to apply it against an AR invoice. This will ...

• How do I apply a credit and debit invoice in AP payments against each other?

  In AP payments, we can see vendor ZIO000 has two “invoices” that offset each other, but the system is unable to match them because the invoice numbers are different. Because the system is unable to clear them for you, you can accomplish this using AP ...

• How to enter an AP invoice that utilizes currency.

  AP Invoice Entry- To begin, you should make sure that the currency exchange setup for Accounts Payable has been completed (See knowledge article). To enter an invoice with currency, you will open AP invoice entry under the accounting tab and add a ...

• How do I edit a recurring AP invoice?

  To edit or stop a recurring invoice, you will need to select the invoice within AP inquiry that you created. If you double click on the invoice line in AP inquiry that is set to be recurring, Softbase will open AP Invoice Recurring Maintenance and ...

• How to apply a credit in AP with a journal entry

  When a user voids a check, the invoice will be reinstated into your payables and will be available for selection in AP payments to pay again. If you need to take a credit against that invoice, however, you cannot use the "apply to" change option in ...