Hi Jamie & Pam
There are a few options depending on your particular circumstances ....
& (if you're GST-registered) ....
If so you will need to ensure you have an in/out trail in your transactions reflecting this upon "removal".
If you report on a Cash basis & have minimal overpayment transaction amounts (eg for ones under $10), I'd suggest just editing the original bill to match & re-ticking to re-allocate the overpayment. However, if you report on an Accruals basis - depending on what was lodged at the time - you may need to create a General Journal entry to reverse these. If you're not GST-registered & simply to remove these credits from your A/P ....
If you ARE GST-registered & have previously reported these credits, you can offset this by debiting the same original account & tax code (as per the old, related bill) in your GJ.
Pam, if you're using RA Premier or above, you may want to turn on multi-currency as RA enters the value difference automatically, posting it to an "Exchange Gain/Loss" expense account. Alternatively, you could create an additional GJ to move it to this account.
TIP: As you proceed, check the affected accounts to ensure amounts are debiting/crediting correctly & once you've got it right, memorise the GJ transaction(s) so you can easily re-use them if required.
Shaz Hughes Dip(Fin) ACQ NSW, MICB
0422 886 003
".... If I put another journal through to creditors this will leave a nil balance showing on the creditors listing but an amount in the Balance sheet ..."
Are you referring to the Creditors Balance on the Balance Sheet or another account?
You will need to post individual GJs per Supplier if this amount outstanding relates to more than one.
Basically, you need to create each GJ & allocate according to the Supplier transactions that created the initial O/S balance(s) in your A/P.
Hope that helps.