Question: I've prepaid $5,000 and received merchandise worth $4,000. I will not receive any more merchandise towards the purchase order. How do I handle the overpayment of $1,000?
Answer: If you've created a prepayment (credit memo) of $5,000, and received only $4,000 worth of goods, the accounts payable/purchase order reconciliation process will be for $4,000. Clicking the As Is button in the ribbon in A/P PO Reconciliation selects the check box in the Fully Invoiced column in the Receipts grid. After you have created an accounts payable voucher for the reconciliation against the prepayment, and the reconciliation was fully invoiced, you can close the prepayment voucher in Supplier Prepayment Management. When you do this, the remaining $1,000 will automatically become a debit memo on the vendor's account. The debit memo is generated with the next available voucher number, and it references the reconciliation voucher number as an associated voucher for tracking purposes. The debit memo clears any balance in the prepayment general ledger account and reduces the liability against the vendor. It can be used in the next payment for the vendor: it will reduce the payment by the amount of the debit memo.