Applying a vendor credit against a bill payment

[jcachia]

When I create a vendor credit under enter bills and then try to pay a series of bills under pay bills including the vendor credit, the credit is not being recognized. Under the chart of accounts, the A/P will recognize the credit, but not when I pay the bill. What am I missing here?

Thanks.

[YourVirtualAsst]

Select the bill you want to apply the credit to then select "set credit", enter how much of the credit you want to apply to that bill. After you have completed this step it should show the credit in the "credits used" column for that bill.