When you pay a bill via credit card a credit gets auto created on the original vendor and auto applied to that bill. The bill on the original vendor is therefore paid and closed. A new bill then gets opened for the same amount on the credit card vendor. In essence the bill is being moved from the original vendor to the credit card vendor.
None of this can be backed out. If you pay a bill via credit card and later realize the bill should have been paid a different way, the bill on the credit card must be credited off and a new bill must be created on the original vendor. Whenever you have paid a bill by credit card in error follow these steps:
- Go to the original vendor and make note of what expense line/GL account is in the body of the bill.
- Go to the Credit Card vendor and create a credit. In the body of the credit use the expense line/GL account you noted.
- Apply that credit to the open bill for this transaction on the credit card vendor (do not try to credit off the original bill, that bill was already paid by CC)
- Open the vendor the bill was originally on
- Re-create the bill from scratch on the original vendor
Note: Under no circumstances should the credit card bill be deleted. Doing so will not open back up the original bill and it will throw off the GL. If a bill has been deleted off of the credit card vendor it must be recreated and then the steps above should be followed. When you re-create the credit card bill, make sure to select the credit card’s GL account in the body of the bill, not the expense account GL.
