If a customer has already paid for the merchandise sold and the product type is inventory, then it is best to process the transaction as an accounts payable document, and pay the refund as a cash disbursement.
1. Create an Account Payable to the customer. The amount to refund on the account payable line should be positive. The Expense GL account on the Account Payable Line should be set to the Revenue GL Account originally used on the Billing Line for the original product sale. 
Tip - In the Payee Reference field of the Accounts Payable, indicate the Billing and reason for the refund to the customer. This explanation will be printed on the check or if a credit card transaction can be useful in reconciling the account.
2. Create a Cash Disbursement by following the standard instructions for creating a single or batch cash disbursement(s).
3. Create an inbound inventory movement with a type of Accounting. Set the Credit GL account to the value used to record Cost of Goods Sold.
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