Subtitles of the Movie

In the last lesson we covered the first half of supplier debits by creating a couple of purchases; one with a negative amount and another with a negative number of items. In this lesson we're going to cover the second half of supplier debits, which is actually applying them. There are two ways in which we can apply supplier debits. First we can apply them directly to an existing, unpaid purchase. The amount that we owe to the supplier will then drop by the amount of the debit. Second, the supplier can send us the money and we simply record that. So let's cover the first one. In the Purchases Register, select the Returns and Debits Tab and locate the 120 dollar credit we created in the last lesson. Highlight that and click the Apply to Purchase Button at the bottom. The Settle Returns and Debits Window opens where the debit amount that we're going to apply is shown in the field at the top left. We can see all of our open purchases for that supplier shown in the middle and we can select any of these to apply the debit to. We don't actually have any open bills left because we paid them all but there's nothing wrong with choosing the 1200 dollar order. Click in the Amount Applied Field for that line and the debit amount is automatically entered for us. Hit the Tab Key once to confirm that amount and we should see the out-of-balance amount change to zero. Record that and that's all we have to do for that debit. We can check it out now under the Orders Tab and instead of 1200 dollars, we now owe only 1,080 for that order. OK, no let's cover the second method. For this we're going to use the 2,000 dollar credit that we created in the last lesson. Locate that using the Returns and Debits Tab in the Purchases Register and this time click the Receive Refund Button. The Settle Returns and Debits Window opens again but it looks a little bit different this time. At the top left we can select the account to deposit the funds into or group the amount with undeposited funds if you hang on to multiple payments and bank them all at once. In the middle, the supplier and amount received are shown. Just below that select the payment method that the supplier has used and some details if you like. There's a memo below that and now we can hit the Record Button. And that's it. As I mentioned before, this whole process is almost exactly the same as recording customer credits except this time we're the customer and the supplier is giving us the money. And that's it for this lesson. Let's move on.