What do you understand by the term Debit Balance? How can we recover it if we won't have any future transactions from the supplier?
The debit balance is an amount of cash the customer must have in the account as security to follow the execution of a purchase order so that the transaction can be settled correctly. To recover the debit balance, we have to raise a credit memo for the regular vendors. However, if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from their side.
To recover the debit balance, we can follow up with the vendor to send us the excess amount or refund back, or we can adjust that extra amount in future invoices submitted by that vendor.
