Learn how to record vendor refunds for different scenarios. 

Scenario 1: Link a vendor refund check to a vendor credit

Note: If the refund is for returned inventory items, you need to create a vendor credit.

Step 1: Enter the vendor refund check in the Deposit screen
  1. On the upper right hand side of the screen, select Plus Sign (+) .
  2. Select Other > Bank Deposit.
  3. On the Add other funds to this deposit section, enter the following information:
    • Received from – select or enter the desired vendor.
    • Account – select Account Payable account.
    • Amount – enter the amount of the check.
  4. Select Save and close.
Step 2: Link the deposit with the vendor credit
  1. On the upper right hand side of the screen, select Plus Sign (+).
  2. Select Vendors > Check.
  3. In the Choose a payee drop-down, select the desired vendor.
    Note: An Add to Check window will show up on the right hand side of the screen and this will bring up any outstanding credit and bills.
  4. In the Add to Check window, add the outstanding Vendor Credit (Unapplied Payment#) and Deposit.
  5. Select Save and close.

Scenario 2: Pay bills using vendor credit

Step 1: Enter the vendor credit
  1. Select Plus Sign (+) > Vendor Credit.
  2. In the Vendor field, select the appropriate vendor name.
  3. Enter the Credit Date, Credit Amount, and Account (the account used here is typically the original expense account on the original bill.)
  4. Select Save and close.
Step 2 : Pay your bills using your vendor credit
  1. Select Plus Sign (+) > Vendors > Check.
  2. In the Choose a payee drop-down, select the desired vendor.(This will bring up any outstanding credits and bills).
  3. In the Add to Check window, add the outstanding Bill and Vendor Credit.
  4. Select Save and close.

Why do I have vendor credits?

If you recorded checks for Vendors in the Checks screen and didn't enter bills, you will end up with negative balances for your Vendors.

To fix this, either go back and delete the bill payments and replace them with Check, or simply enter one or multiple bills to link the bill payments to.

To link the Vendor credits with bills, first create the bills. When you're ready to link the bills to Vendor credits:

  1. Select Plus Sign (+) > Vendors > Check.
  2. In the Choose a payee drop-down, select the desired vendor (this will bring up the vendor information).
  3. Leave the amount field blank.
  4. Below the Bill Payment box for the Credits and Bill Payment Information. Select the appropriate bill with the appropriate credit.
  5. Select Save and close.

 

 

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