Part Paid Invoice - remaining balance now not owed

Can anyone tell me what to do if we processed an invoice and partially paid it, but now the remaining amount is no longer due?  I am trying to figure out how to clear the remaining balance out of A/P. 

Thank you in advance for your help!

Hello Beth,

The best way to handle this would be to use the following process:

1. Create a Credit Memo (negative invoice) for the same amount as the un-paid portion of the invoice (Please ensure that at minimum the transaction is dated today or earlier).

2. Go to Check Writer and complete a Check on Demand selecting the outstanding invoice and the credit memo, the system will issue a zero dollar check that you can then discard. 

If you have any trouble completing the process above, please feel free to open a case with out support team and we will help by walking you through the process. 

Mike Cheesman

M3 Support Manager

Hello Beth,

The best way to handle this would be to use the following process:

1. Create a Credit Memo (negative invoice) for the same amount as the un-paid portion of the invoice (Please ensure that at minimum the transaction is dated today or earlier).

2. Go to Check Writer and complete a Check on Demand selecting the outstanding invoice and the credit memo, the system will issue a zero dollar check that you can then discard. 

If you have any trouble completing the process above, please feel free to open a case with out support team and we will help by walking you through the process. 

Mike Cheesman

M3 Support Manager

Thank you!

Expanding on this question, what if the invoices are several years old?  I've inherited a mess that I'm trying to clean up.  Invoices that are 3 & 4 years old that have been paid but the payments were never entered or the invoices were lumped together with other invoices and paid in one lump sum.  There's no way of telling what was paid and when. Payments were made off of vendor statements, partial payments were made...etc.  It would take a forensic accountant over a year to sort though.

Any ideas?

To expand on this, we have a lot of invoices that have been paid by various means that are still showing open.  How can I get rid of them?  Some are several years old, some have been paid as a lump sum in another entry.  All in all a mess.  Should I create credits for all of them and follow the same procedure?

Easy route: Start with a current vendor statement.

Work from there...if it's not on the current statement, than it needs to be adjusted off.

Your prior year P&L's are already incorrect, no point in trying to fix it....unless you're going to restate your prior year financials.

Hard route: Get an account history from the vendor for each of the prior years and reconcile.

Good luck!