Sometimes when you do warranty service work for a client, you would normally create an Accounts receivable amount billed to the warranty company. You normally get paid from that vendor later on by check or Bank draft. Occasionally the warranty company will give you a credit for the next parts order rather than giving you payment.
Its an option under the Accounts receivable to move this open invoice to payables.
First select the A/p credit icon under the receivable account.
First select the location at the bottom of the screen:
Next check the A/r Amounts on each invoice to be placed into A/p. Then click create.
Select the vendor to move this into from the vendors list.
You will need to select a Date and a reference number for this credit and then hit Save Credit.
Now the Credit is available in a/p to apply to that vendors Open invoices.