Oops – I’ve paid the wrong vendor, and they just sent back my check. Now what?
It’s not uncommon to have vendors who are similarly named and to pick the wrong one when entering an invoice. You save the invoice and eventually write a check to pay the bill. However, that vendor returns the check saying – you don’t owe us this money. Looking back, you realize you had created the invoice incorrectly and now you need to fix it.
There are a number of different ways to get the payment to the correct vendor, but the method described below will provide a clear audit trail of the transactions.
First, you need to void the payment made to the incorrect vendor. Go to Accounts Payable > Checks > Void Payments by Vendor. Then, select the check number and click VOID.
This will reinstate the invoice to the original vendor. Now, you will need to credit the invoice(s) so you can re-enter to the correct vendor. Because you have already transacted against the invoice(s), you cannot use the Void Invoice function.
Accounts Payable > Invoices > Credit Memos. Select the original vendor and the reinstated invoice number. Distribute the credit to the appropriate GL account and save. Repeat for as many invoices as necessary.
Then, recreate the invoice(s) using the same GL account(s) from the credit(s) created. This will have a zero net effect on the General Ledger.
The invoice(s) are now ready to be reselected for payment to the correct vendor.
If you have any questions or need assistance with BusinessWorks, please contact Mary Hildinger at 260.423.2414.