Credits from suppliers

How do I process a credit from a supplier for an invoice that I have already paid? The system lets you put a credit against an invoice that has not yet been paid but however hard I try I cannot find a satisfactory way of doing this. Any help would be very welcome. Thanks.

Click on relevant purchase invoice and then click on credit note, it will let you create credit which you can show as money refunded to you in bank or cash or hold funds on account for supplier

I tried this and showed the credit as funds held on account for supplier however this seemed just to add to the total I owed the supplier instead of deducting the credit. I want to be able to pay down selected invoices less the credit notes so that the amount I am paying them agrees with their statement.

System will show how much you owe your suppliers in terms on invoices and credit held on account separately. Now if you pick on any invoice you want to pay that supplier and clcik on loadge payment , you will see in yellow bar Apply from credit [GBP xx.00] , what ever credit aviable and below it will show how you want to pay balance

I think I’ve got it now! Thanks for your help and speedy reply.