Correcting or Reversing a Posted Purchase to a Vendor

A Purchase Debit is used to reverse posted purchase or reduce a vendor's balance.

Reference: Applying a Vendor Pre-Payment or Purchase Debit

A Purchase Debit is typically used in the following situations:

1. When a Purchase entry is entered and posted incorrectly
2. When you need to reverse an entire Purchase because it was added to the wrong vendor or is not valid.
3. When you need to reduce the vendors balance by an amount, for example, your vendor sends a Credit Memo.

A Purchase Debit is referred to as a “debit” because it is debiting your Accounts Payable general ledger account and reducing the vendors balance.

To create a Purchase Debit type entry:

1) Open the Purchases window from the AP menu or the "Payables" tab in the Connected Desktop window.

2) Click “Add”.  

3) The following "Choices" window will appear. Select the "Purchase Debit" option. Click the Proceed with Add New button to continue.

4) The Purchases window will open with the type "Purchase Debit" selected. Complete the remaining fields.   

NOTE: If you are reversing an incorrect entry, make sure that the Invoice Date is the same as the original.

5) When you get to the GST/HST or VAT field (Canadian and UK users only) enter an amount, if applicable. This amount should be entered as positive value.

6) In the “Amount” field, enter the total of the Debit entry. Press TAB to advance to the “Accounts” tab in the body of the window.

7) Only make changes to the accounts if required. For example, if you are reversing a Purchase that had a custom account distribution, you would want to make sure that the accounts displayed are the opposite of the original. 

8) Click Save or press ENTER to complete the entry.

The following screen shows an example of a Purchase Debit entry.

Once the Purchase Debit is posted, it will remain on the vendors account as a negative amount until later applied.

Reference: Applying a Vendor Pre-Payment or Purchase Debit