1. Open up AP Invoice Entry and start your journal either by typing in a journal name or clicking on Next Journal # from the top toolbar

2. Click "Save" to open up the AP Invoice Entry header

3. Enter in the vendor number associated with the credit

4. Enter in the Credit AP Invoice Number

5. Enter in the credit amount. You will use the negative sign to indicate it is a credit amount which will be a debit entry into your AP GL acount

6. Click the + sign to add the AP invoice to the journal

7. In the Distribution section start by entering in the AR GL account number

8. Enter in the Bill To Customer number from the warranty invoice that this credit is associated with.

9. Enter in the Invoice Number that this credit is associated with

10. The system automatically has the full amount of the credit in the amount field. Clicking add here would post the full $600 credit against that invoice number - if the warranty credit and invoice number are not the same amount please keep reading below

11. If the credit is for more or less than the invoice amount adjust the amount on the line for accounts receivable to be the full invoice amount

12. Click to add or update that line

13. Then select an offset GL account where you can post the difference from the credit to the invoice

14. Click to add that line item. The system will have the amount populated based on the difference from the Credit AP Invoice Total and the amount entered in the previous line to AR

15. Click "Post"

16. Click "Yes" and this will pay off the Warranty Account and Invoice that was identified in the distribution of the AP Invoice.