Hello,
I have an A/P related question and I hope I can get some insight as to how it should be recorded. I work for a Not-for Profit Low Income Housing Management company. I have been entering the water & sewer invoices for the past year. The business has been lax in paying their water & sewer bills timely so the development company (which is under the umbrella but a separate entity from our company) decided to close out an escrow account to pay off one of the buldiings water & sewer invocies. My question is how should it be recorded in the system. If I void the invocies then we lose the trail of what our water & sewer exepense is. Someone suggested we enter a credit memo. I am not sure how to go about this without endangering GAAP policies.
