customer paid our supplier diretly

[RobinMc]

We billed a customer for service and for materials and the customer paid our supplier for the materials directly. This invoice is in our system. How do I account for this credit? Usually Credit Cash and Debit Materials directly through the payment processing. Now, since this money isn't going through our account from her, how do I credit this invoice in our system?
Thanks!

[LauraG]

This happened to us recently. I ended up issuing a credit memo applied to the original invoice to get it off our books.