Adjust for an AP advance applied in error

Say you applied an advance and a payment to a bill, then realized that you applied the advance in error. If you do not want to void the payment to unapply the advance, the alternative is to create AP adjustments to correct for the error.

To do this, you need to create two adjustments: one for the bill payment and the other for the consumed AP advance. When you create the adjustments, you might find it handy to have the following available for reference:

• The original bill
• The original advance
• The amount of the advance applied in error

1. Create a credit memo adjustment to adjust for the portion of the bill that was erroneously paid with the advance.
   1. Go to Accounts Payable > All > Payments, and select Add (circle) next to Adjustments.

      The AP Adjustment page opens.

   2. Enter the Date of the adjustment.
   3. Select the same Vendor as in the original bill.
   4. For the Type of adjustment to create, select Credit memo adjustment.

      A credit memo adjustment increases the amount that you owe the vendor.

   5. For Reference bill number, select the number of the bill that you are correcting.
   6. Optionally, enter a Description to describe the correction.
   7. Enter values for currency fields, account, and dimensions that match the original bill.
   8. For the Transaction amount, enter the amount of the advance that was applied.

      This may be different than the total amount paid against the bill.

   9. Select Post & new.

      You are now ready to create the next adjustment.

2. Create a debit memo adjustment to adjust for the advance that was applied in error.
   1. Select the same Vendor.
   2. For Type, select Debit memo adjustment.

      A debit memo adjustment becomes a vendor credit that you can apply to the bills.

   3. Enter values for currency fields, account, and dimensions that match the original AP advance.
   4. For the Transaction amount, enter the amount of the advance that was applied.

      This is the same amount that you entered for the credit memo adjustment you created.

   5. Select Post.

      The AP Adjustments list displays. The two adjustments you created, one positive and one negative, appear in the list.

Next step:

Now that you created the two adjustments:

• The credit memo adjustment is available for payment on the Pay bills page.
• The debit memo adjustment you created to replace the advance is available as a credit to apply to bills from the same vendor.

To view details of credits before applying them to the next bill, select Line details for the bill on the Pay bills page, then select Credit details. This shows which credits are from adjustments or advances and shows dimension details. You can selectively apply credits as appropriate.