Vendor Refunds

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NATASHA PARKS

We received a refund check from our Vendor for an AP that was entered and paid twice (in error). I see that I can create a Cash Receipt and mark it as a "Vendor Refund" under Type. Could you please explain how to properly apply the receipt to put the money back into the original expense account that the AP was booked to, and record the deposit?

Thank you,

 

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7 comments

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  • Tony

    Hi Natasha,

    Simply select what GL Account you would like the credit to go to in the Credit GL account on the cash receipt. This will debit cash and credit your expense GL account appropriately.

     

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  • NATASHA PARKS

    Thanks, Tony. The cash receipt will remain unapplied, correct?

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  • Tony

    Yes correct. 

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  • Terese

    I like the simplicity of posting a cash receipt for a vendor refund but I don't like having a cash receipt with a balance. I would love to be able to enter a credit memo in accounts payable and clear it with the cash receipt. In a future release perhaps?

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  • JeaNae Remala

    I agree Terese.  

     

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  • Anna Anderson

    I agree. Being able to match a cash receipt against a payable or related journal entry would keep records from hanging out there as if incomplete or unpaid.

     

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  • Anna Anderson

    One of the things I like about accounting seed is that you allow credit entries on the same object. This allows one to run a report on payable activity for a vendor and see any reversals in the same place. If you post a debit directly to the GL account with the cash receipt, the refund will not be reflected in the vendor payable related list section.

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