When you post a purchase invoice to a vendor account, a vendor ledger entry (a credit entry) is created with a check mark in the Open field.
When you post a payment or a purchase credit memo (a debit entry), you can apply it to one or more credit entries. The credit entries are either completely closed and the check mark in the Open field is removed, or the entry is partially closed and the check mark remains.
It is important to apply and close entries to obtain correct vendor statistics so that account statements and finance charges can be calculated correctly.
If the Application Method field on the Payments FastTab on the vendor card contains Apply to Oldest, you can manually apply a payment to the vendor. If you do not specify what the payment should be applied to, it will automatically be applied to the oldest open credit entry.
If the application method for a vendor is Manual, you must apply entries manually.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Apply a journal, a purchase document, or an already posted vendor ledger entry to one or more vendor ledger entries. | |
Apply a payment in one currency to a purchase in another currency. | |
Reopen closed entries and make correcting entries. |