Write off a vendor balance
GroJ
Member Posts: 2
Hello!
In 2016, there were a few bills that were only partially paid by the company I work for. For exemple, the bill would be of 620$ and only paid 600$ (why? I don't know).
The vendor never asked for the rest of the payment. These bills are marked as unpaid and they still appear in the "Aged payables".
Obviously, 2016 is a closed year and I can't go modify these bills. My question is: how to write off a vendor balance, so my balance is accurate and these bills don't appear as unpaid and in the "Aged payables" anymore?
Thank you!
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Comments
Hi @GroJ ! I'd be happy to offer my advice here, with the caveat that I'm not personally an accounting professional. When it comes to things related to money owed, it's never a bad idea to run questions by a pro.
That said, I understand this should be fairly simple. I believe you would need to create a journal where you debit accounts payable and credit other income. I'd recommend also reviewing our FAQ for correctly recording bad debt, as this case is similar.
I don't understand. So what happens to the item in the Bill section. It will still have an outstanding payment for the vendor. How do you link the journal entry to the vendor to write off the amount due to said vendor?