About payable credits

There are many circumstances when you might have to enter a credit invoice. Suppose you return materials to a vendor. With the return of the materials, it is necessary to reduce the accounts payable.

When you save a credit invoice, Sage 100 Contractor reduces the vendor balance. However, the credit invoice retains status 1-Open until you apply it against other invoices in the Vendor Payments window. After you have applied the credit balance to other invoices, Sage 100 Contractor assigns the credit invoice status 4-Paid.

You can also apply a credit invoice to an invoice at the time you save the record. If the invoice is fully paid by means of the credit invoice, Sage 100 Contractor changes the status of the invoice to 4-Paid. If the invoice still has a balance after applying the credit, the invoice status is not changed. Likewise, if the entire amount of the credit is applied, the status of the credit invoice changes to 4-Paid. If a credit invoice still has a balance after applying it to an invoice, the status of the credit invoice remains unchanged. You can then apply the remaining credit invoice balance to other invoices in the Vendor Payments window.

Important! You cannot reverse a credit invoice after applying it to an invoice. If you have applied a credit invoice to the wrong invoice, make reversing entries to correct the error.