Rebate from Supplier

can someone please guide me how to adjust Rebate given to me from the supplier in general overall balance, i tried by debit note but the amount goes to suspense account. I don’t know how to adjust it as the amount is now not payable by me, m confused how to adjust it

There could be several methods, depending on how and why the rebate is given:

  1. If the supplier just gives you a credit on your account to use in the future (such as for your total volume of business), enter a debit note. Post the debit note to Accounts payable >> Customer Name, but leave the invoice number blank. The amount will be applied to your next purchase invoice for that supplier. Normally, this situation would mean that the supplier has sent you a credit note.

  2. If the rebate is for specific inventory items, list them on the debit note with the rebate amount as the unit price. The rebate will be applied to their average cost. Your Accounts payable balance will also be adjusted. Unless you are actually returning inventory items, leave the quantity blank. This could also be covered by a credit note from the supplier.

  3. If the supplier just sends you money, enter a receipt. Follow the same procedures as in #1 or #2 above in determining where to post the receipt.

Actually the situation is that the supplier is giving items on credit i. e his balance stands suppose 50000 Rs and on some special occasion he says 5000 Rs is from supplier not in form of cash or any thing just reduction in balance and now i have to pay just 45000 Rs, the problem is it is not against items nor to be used for later purchase. It is just reduction in accounts payable for the specific supplier.

That is exactly like option #1. Instead of being applied to a future purchase, since you already owe more money to the supplier, the amount in the debit note will be applied to the purchase invoice with a balance due with the oldest due date, then the next oldest, etc.