Last year, I created 3 Debit Notes (totaling $27.77) to reflect returned item credits issued by one of my suppliers. The Summary page then showed a -27.77 in Accounts payable.
Shortly thereafter, I made a subsequent purchase from that supplier and my $27.77 credit was used to offset my total purchase price. As with each of my inventory purchases, I recorded the purchase with a Spend Money, Payment transaction in a Cash Account. I added a line to the Payment transaction and allocated the $27.77 credit to Accounts payable and the supplier’s subaccount. By doing this, my invoice total was correct and the -27.77 was cleared from Accounts payable.
The numbers shown on both the Summary page and my Inventory look correct. However, the Debit Notes tab shows that I have 3 debit notes. Should they still be showing up in that tab if they were accounted for in last year’s accounting period? Or was the debit note allocated incorrectly?