Collecting and Preventing Debit Balances

The main focus of accounts payable (AP) is paying vendor invoices, of course. But what happens when that focus is suddenly shifted? What happens when it is the vendor who owes you, rather than the other way around? This menacing problem is called a debit balance. Debit balances can be caused by different types of transactions initiated by a variety of people. Some common examples are large product returns, allowances, rebates, and chargebacks (internal or external). Transaction timing plays a…