How do I input a credit

[raylaurenza]

I have an accounts payable to Amazon. Last month I bought $1000 worth of items, due in thirty days. I input each item in as a separate item, all totalling up to $1000, as they should. On the invoice from Amazon is a credit for $100, so payment due is now $900.

How do I put that into accounts payable for Amazon so that when I pay and post the bill in power church, it will show I paid 900, and not $1000. I can't seem to get it to show I am paying 900 instead of $1000.

[NeilZ]

I have an accounts payable to Amazon. Last month I bought $1000 worth of items, due in thirty days. I input each item in as a separate item, all totalling up to $1000, as they should. On the invoice from Amazon is a credit for $100, so payment due is now $900.

How do I put that into accounts payable for Amazon so that when I pay and post the bill in power church, it will show I paid 900, and not $1000. I can't seem to get it to show I am paying 900 instead of $1000.

First off, what is the credit for? Is it a refund, overpayment, returned item? Can't give you more advice without that information.

Another question, is this a Amazon credit card? If so, are you inputting this using the credit card liability account and reconciliation, or as a regular invoice?

[raylaurenza]

This is a Amazon Corporate Card. I input each transaction that I receive on my monthly bill as a separate invoice to accounts payable.
The credit is for returned item(s)

So what is happening this month, is I have a bill for 1000.00

I input all transaction into Accounts payable as separate transaction.
So lets say there are 11 items at $100 each. So when I input into accounts payable, I have 11 transaction that total up to $1100, like they should.

But when I go to actually pay the bill to Amazonl, I only have to pay $1000, because there is a $100 credit for a returned item.

But power church still thinks I am paying $1100, but I don't know how to input this credit for returned item.

I hope that makes sense.

[NeilZ]

This is a Amazon Corporate Card. I input each transaction that I receive on my monthly bill as a separate invoice to accounts payable.
The credit is for returned item(s)

So what is happening this month, is I have a bill for 1000.00

I input all transaction into Accounts payable as separate transaction.
So lets say there are 11 items at $100 each. So when I input into accounts payable, I have 11 transaction that total up to $1100, like they should.

But when I go to actually pay the bill to Amazonl, I only have to pay $1000, because there is a $100 credit for a returned item.

But power church still thinks I am paying $1100, but I don't know how to input this credit for returned item.

I hope that makes sense.

OK .. the problem is that you're entering each transaction separately. Unless you're using a liability account to hold the transactions until the bill comes in, you're going to wind up with this issue.

This 2015 Powerchurch Newsletter should give you some ideas on what you should be doing:

https://www.powerchurch.com/support/441 ... pring-2015

I use the second method, and enter the transactions so they collect in the liability account. If I get a credit, then the adjustment is made in the liability account by entering a DEBIT toward the liability account, and a CREDIT towards the expense. When the bill shows up, I do the reconcile as shown, and any credits are checked off there.

However, what to do in your case now. Enter a transaction that is basically a reverse for the one that you received a credit for. Say you entered a purchase for $150.00 for candles it would look something like this using your current method:

01-1110-000 Checking CR $150
01-5410-000 Worship DB $150

In the memo box I enter: "Purchase of candles for worship"

So you now enter another transaction as such:

01-1110-000 Checking DB $150
01-5410-000 Worship CR $150

now in the memo I put: "Credit for return of candles to Amazon"

basically, you're reversing the transaction but with a full audit trail

In future, I'd go with the liability method as shown in the newsletter. It talks about keeping a balance, but I don't, I pay it off each month. However, since I'm entering each transaction I don't have to hunt down receipts, just enter the transaction, and put the receipt in a folder until the paper bill (or the printout from a paperless bill) arrives. I then reconcile , write the check, and put the check stub of the check with the receipts, and staple all that together with the bill for file.

One thing I need to point out. The newsletter shows the 'modify unposted transactions' screen capture. I use the MANUAL CHECK entry in Accounts Payable, as that's where the vendor information is. Since you're purchasing only from Amazon, this is not as crucial, but we have an AmEx corporate card, and we purchase from a few places - Lowes, Staples, Post Office, etc. So when I enter the transaction, I can show where the money was spent for an audit trail.



Does this help??