Hello, @Lab Q.

You can create a journal entry or use discounts to write off your vendor balance. I can guide you how to do it.

1. Go to the Company menu.
2. Select Make General Journal Entries.
3. In the Make General Journal Entries window, change the date and fill in the entry number if necessary.

4. From the Account field, choose Accounts Payable.

5. Enter the amount under the Debit column.
6. Pick the vendor's name in the Name column.
7. In the next line, select the offset account and enter the amount under the Credit column.

8. Select Save & Close.

Once completed, you can apply the journal entry to the vendor's balance. Here's how:

1. Go to the Vendors menu.
2. Choose Pay Bills.
3. Select the bill and choose Set Credits.
4. Under the Credits tab, select the available credit.
5. Click Done.
6. Select Save & Close.

I'd also recommend consulting with your accountant so you'd be guided accurately in tracking your expense transactions accurately. You can check this article for more detailed steps in writing off your vendor's balance using discount: Write off vendor balances (Go to Write off customer and vendor balances section).

Know that the Community and I are always here to help you in managing your income and expense transactions. Feel free to leave your comments below. Have a great day ahead!