A client paid a deposit to a supplier and then paid on their full invoice, not realising the deposit had not come off. They have since been refunded the deposit.
To solve it – Do a ‘Bill Credit’ to reverse the deposit paid. This will put the Supplier account into negative. Then do a bank deposit to record the money going back into the bank account, using the Supplier Name in ‘Received From’ and Accounts Payable in ‘From Account’. This will zero out the supplier balance. It is very important that you then go into ‘Pay Bills’ and apply the bill credit against the deposit or else this balance will show as a $0.00 balance on your Accounts Payable Reports.