Best way to fix bogus bill partially paid?

Client took out a bank loan, and recorded the loan in an unorthodox manner, part of which involved creating a Bill (so a credit to A/P) for an amount intended to represent the sum of the loan payments, then made several loan payments by partially paying the bill. 

Is there an easier way to clean this up than deleting / voiding the bill payments, re-entering those transactions as regular checks (booked to interest and principal, not A/P), then deleting the bill?

Answer

"involved creating a Bill (so a credit to A/P) for an amount intended to represent the sum of the loan payments, then made several loan payments by partially paying the bill."

Well, this is unnecessary and moved a potentially long term liability to a current or revolving liability, but this is not really bogus. It is convenient and used by people who don't really understand how the data flows for accurate reporting.

"Is there an easier way to clean this up than deleting / voiding the bill payments, re-entering those transactions as regular checks (booked to interest and principal, not A/P), then deleting the bill?"

 

There really isn't anything to clean up.

 

If you want to close out the remaining balance in AP and see it back in the loan liability account, then create one Vendor Credit (enter bill, change the radio button at the top) and on the expenses tab, post to the Loan Liability account. Use Pay Bills and apply this credit to the open balance on the bill.

 

Don't over-react and jump in the deep end of the pool and start making changes to or voiding transactions. That isn't typically going to fix anything.

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