Available to Accounting Basic, Accounting Premium
When you are paying your vendors, you can enter a negative payment amount. You would do this for two reasons:
1) Correcting a previous vendor payment,
2) Deducting from the vendor for a purchase they made from you.
Correcting a Vendor Payment
At this time we do not have functionality for Vendor Credits. However, if you need to make a correction to a vendor payment, you can enter a negative payment amount to reduce the payment. This correction would need to update the year-to-date payment information that will print on their 1099.
A deduction correction can only be included with another positive payment, so the total check is positive. If you need to void or delete an entire vendor payment, see Voiding a Vendor Payment.
Before you change any amount to a vendor who has been paid by credit card, please read, “Recording a vendor payment by credit card.”
Go to Accounting > Payables > Enter & Pay Bills
Select a vendor to pay.
Enter the amount of the correction as a negative number.
Select the same 1099 Type as the incorrect payment. This will correct the year-to-date payment total on the 1099 at the end of the year.
Enter another positive amount to pay by clicking “Add Line Item.” The total amount of the check must be a positive number.
Continue through the normal steps of paying your vendor.
Deducting From a Vendor Payment for Money Owed to You
You can deduct an amount from a vendor check without affecting the year-end 1099. For example, if your contractor purchases a product or service from you, you can deduct the purchase without affecting their year-to-date payment information.
A deduction correction can only be included with another positive payment, so the total check is positive. If you need to void or delete an entire vendor payment, see Voiding a Vendor Payment.
Go to Accounting >Payables > Enter & Pay Bills
Select a vendor to pay.
Enter the deduction amount as a negative number.
For the 1099 Type, be sure to select “Non-1099 Payment.” This deduction will not affect the year-to-date payment total on the 1099 at the end of the year.
Enter another positive amount to pay by clicking “Add Line Item.”. The total amount of the check must be a positive number.
Continue through the normal steps of paying your vendor.
To add vendor payments made to you before using Patriot Software, see: Updating Vendor Payment History