If you no longer expect to pay for an outstanding bill, apply a debit to the vendor's open bill to close the purchase.

To create a debit memo in AccountEdge:

1. Create a Miscellaneous/Service Bill for the Vendor for the outstanding amount, using a negative value. If you use Categories - make sure to apply the same category as on the original bill.
2. Enter the same expense account number in the Allocation Account field as used in the original purchase order. If the purchase is an item purchase, you can allocate this debit memo to the Cost of Goods account associated with the item.
3. Click Record.
4. Go to the Purchases Register in the Purchases Command Center.
5. Click the Returns & Debit Tab.
6. Highlight the debit you created for the outstanding bill.
7. Click Apply to Purchase. The Settle Returns & Debits window appears.
8. Apply the debit to the bill(s) you wish to write off.
9. Click Record.