I have almost the exact same issue as Lab Q. My client (General Contractor) has open bills to pay. The owner of their project (my client's client) paid the invoice. It did not go through my clients accounts and will not. I need to show the bill as paid as it has been paid to the vendor. What would the offsetting account be for the Accounts Payable? I had read somewhere (and now can't find) to do A/P-debit-vendor & A/R-credit-project, then to go into the orginial bill as mark as paid with the credit and the debit both checked. This does show the bill as paid. I noticed yesterday that when I got into receive payment for the project, there are a bunch of credits at the bottom. What did I do wrong? How do I fix this?
