How to correctly record a payment on the statement as being for credit with that supplier
Question asked by Gregory Sanderson 1 month ago
I have a payment to a supplier on my bank statement for, let's say, £100. It was for £100 of credit with the supplier. So I need clearbooks to know I have that amount to deduct subsequent invoices from them from. So ... can someone please tell me:
How do I explain that payment of £100 on the bank statement to reflect that situation? Do I create a bill (Purchases > Bills) from the supplier with an account code to reflect that it is owed ... And/or make a credit note (Purchases > Credit notes) from the supplier?
When I subsequently receive an invoice from that same supplier, let's say for £10, how do I explain that bill as being paid out of that £100 of credit (else it'll be listed as needing paying from the bank account, which it won't need to be)?. Is it from the bottom-right section, from the blue 'Credit' > 'Apply credit note'?