now that you've had some practice with vendor transactions we will talk about finding and
fixing the most challenging mistake to manage a Mis applied payment the normal procedure in
business to make sure that our records match the vendors is that the vendor sends us a monthly
statement that includes all transactions the statement should have both a summary of the
results of the remaining unpaid bills as well as a detail of every single transaction that we had
with the vendor during that month or during the month of time that the statement is showing once
we get the statement we must compare it to our records and if there's any difference we have to
tell the vendor we focus on the mistake of a Mis applied payment because any other mistake will
be clear for your eyes to see when you compare the vendors monthly statement to our records
and the vendor reports that we learned about it will be very easy for you to see if either
we or they have a duplicate transaction it will be very easy for us to see if either we or they
are missing a transaction it will be clear if either of us enter the wrong money amount and
of course if any of us entered the wrong date the transactions will be in a different order
and listed in a different position on the page some of the symptoms or clues that you have a
miss apply payment will be that you agree with the monthly statement and the total balance that
the vendor is showing you however the individual amounts of the unpaid bills are different this is
evidence that somewhere either we or the vendor miss applied one of the payments that were sent
remember a miss applied payment is more likely in a situation where bills are not paid in date order
let's take a look at our unpaid bills section for con Edison this is the way the unpaid bills
detail should look in your file after the last exercise set focusing only on con Edison we have
three bills for a thousand dollars each and the total is three thousand however if you had miss
applied one of the payments in the exercise your unpaid bills for con Edison might look
like this now notice the total balance for con Edison is correct however it's clear to see that
the individual bills one by one or the remaining amount of the unpaid bills for each one are not
correct this is a clear indication that there is a miss applied payment now what do we do to
find and fix this well obviously we have to find the payment and reapply it in order to do that
we should open up the vendor balance detail the vendor balance detail lists every bill and every
payment we should open up each payment to see how it is applied once we find the miss applied
payment we can reapply it and make it correct in a real situation you might have to be on the phone
with the vendor while you do this to make sure that all of your payments are applied in the way
that you agree let's take a look here we are in the QuickBooks file and you can see the section
of con Edison is wrong the total three thousand is correct but the individual bill amounts are still
wrong the only way to fix a miss applied payment is to open this report the vendor balance detail
where you can see all of the bills and all of the payments it is very likely that this is the
payment that's Mis applied because the difference was 990 let's double click now you can see here
that when you reopen a bill payment this is the way the window looks after you have saved it and
reopened it the top part looks like the check and the bottom part tells you where the payment has
been applied you have to be very careful when you reapply payments first you have to remove
the check mark and that'll make the money amount up top disappear you do not replace the check on
to the other bill if you do that QuickBooks will assume you're paying the whole bill and change the
money amount of the check you have to be very careful remove the check marks completely but
don't recheck the margin instead move to the right side and physically type in the amount paid then
when you push the tab key the correct amount of the payment will be applied to the correct bill
this is a very tricky and temperamental window you might have to practice this but when we click
Save and close you notice we can come back to the unpaid bill report and the section of con Edison
now shows that the individual bills are $1,000 each which is the correct result that we want