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    Chance0217's Avatar
    Chance0217 Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 1, 2009, 06:43 PM
    Accounts Payable - Invoice balance reclass from open payables.
    I have a vendor invoice that we made partial payment on and now the vendor is forgiving the balance. I don't want it to stay on open payables so where should I direct the balance on the general ledger?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #2

    Sep 1, 2009, 09:32 PM

    Debit Accounts Payable and credit Inventory/Purchases treating the amount as an allowance granted by the supplier.

    I hope the amount in question must be insignificant. When a vendor forgoes the balance it may mean that he had overcharged you in the first place.

    However, for accounting purposes, it is necessary that you obtain written confirmation about the waiver of the balance.

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