I received a payment from a Vendor that is a refund for a previous invoice paid. How do I process this transaction to show that this vendor paid me back? The refund exceeds any of my invoices and all invoices have already been paid. So there is no open invoice to apply a credit to. Need some help.
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Processing a Vendor Refund
Best answer by Tiffany Seeland
In the AP Debit Adj, code the line item detail where you want the “credit side” to post to. Subaccount field may be optional in your instance.
+20
Step 1: Create Debit Adjustment
- Go to AP → Bills and Adjustments
- Type = Debit Adjustment
- Select Vendor
- Enter Amount & Date
- Save & Release
Step 2: Record Vendor Refund
- Go to AP → Checks and Payments
- Type = Vendor Refund
- Select Vendor & Cash Account
- Enter Amount & Date
- In Documents to Apply tab — select the Debit Adjustment from Step 1
- Save & Release
Step 3: Verify
- Go to AP → Vendor Details
- Confirm vendor balance = Zero
- Confirm Cash Account reflects the deposit
Thanks for the quick feedback. However my question from Steps 1 and 2 is “where does the credit side of this go?” I do not define that in the Debit Adj, and the Record Vendor Refund only post to the Cash Account. How do I define the Credit account for this refund?
In the AP Debit Adj, code the line item detail where you want the “credit side” to post to. Subaccount field may be optional in your instance.
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