You may notice that a vendor's balance is zero even though that vendor has outstanding bills in the Pay Bills window in Small Business Accounting (897879)


The information in this article applies to:

  • Microsoft Office Small Business Accounting 2006
  • Microsoft Office Small Business Management Edition 2006

SYMPTOMS

When you use Microsoft Office Small Business Accounting, you may notice that a vendor's balance is zero even though that vendor has outstanding bills in the Pay Bills window.

CAUSE

This problem may occur when a vendor has outstanding payments or outstanding credits, and these payments or credits have not been applied to the outstanding bills.

RESOLUTION

To resolve this problem, apply the outstanding payments or the outstanding credits to the outstanding bills. For more information about how to apply a payment or a credit to an outstanding bill, see the following topic in the Small Business Accounting Help:

"Apply Credits and Payments dialog box: Options and information"

Note A vendor's balance is the difference between the vendor's outstanding bills and the vendor's outstanding credits. Because the balance is calculated this way, you may also notice that a vendor has a positive balance or a negative balance that may or may not agree with the balance in the Pay Bills window.

MORE INFORMATION

Steps to reproduce the problem

  1. In a Small Business Accounting sample company, click Enter Bills on the Vendors menu.
  2. In the Vendor Bill form, click the arrow in the Vendor Name box, and then select Add a New Vendor.
  3. Add a new vendor, and then click Save and Close.
  4. In the Vendor Bill form, select the new vendor. Then, select an inventory item in the Items and Expenses grid.
  5. Click Save and Close.
  6. On the Vendors menu, click New. Then, click New Credit Memo.
  7. In the Vendor Credit Memo form, select the new vendor in the Vendor Name box.
  8. In the Items and Expenses pane of the Vendor Credit Memo form, choose the same inventory item and the same quantity that you used for the vendor bill that you created in step 4.
  9. Click Save and Close.
  10. On the Vendors menu, point to Vendor Lists, and then click Vendors.
  11. Select the new vendor in the Vendor List box.

    The amount that is listed in the Balance box for that vendor is zero.
  12. On the Vendors menu, click Pay Bills.

    The new vendor has an outstanding bill in the Bills Due list.
Modification Type:MinorLast Reviewed:8/10/2005
Keywords:kbprb KB897879 kbAudEndUser
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