How to apply a reimbursement toward an obligation (amount owing)

If you owe someone a reimbursement and they want to use the money they are owed towards an obligation, create a transaction like this example:

If you owe more than what is being applied against the obligation, you will then use the check number and you will put the difference in the amount.  You will have the amount of the reimbursement in the correct category and the amount of the obligation as a negative. It should look like this: