My company also sells services to a client.

Client was invoiced by my company, but instead of paying me the client paid directly to the vendor.

Vendor reduced its invoice to my company to reflect the payment received directly from client.

Vendor's reduced payment is synched up with bank records.

Obviously there's no payment from client for the invoice.

So I need to record payment against the invoice manually somehow.

When I click Record Payment button I don't see any options to use vendor's credit.

What should I do?