Vendor Refunds

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NATASHA PARKS

• October 27, 2016 18:48

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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  Tony

  • October 27, 2016 21:03

  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

  • October 27, 2016 21:09

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

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  Tony

  • October 27, 2016 21:10

  Yes correct. 

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  Terese

  • March 22, 2017 16:37

  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

  • May 09, 2017 19:06

  I agree Terese.  

   

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  Anna Anderson

  • June 01, 2018 15:30

  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

  • June 01, 2018 15:34

  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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  Deborah Kilgore

  • June 05, 2024 14:19

  I realize this post is from several years ago, but has this been addressed in AS yet? Has someone found a way to actually apply the vendor refund cash receipt to a credit memo payable? 

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  JeaNae Remala

  • June 05, 2024 14:33

  Correct.  You have to create a "dumby" invoice on the vendor account to clear off the credit memo.  I created a recurring payable to use for these and then i just change the vendor account as needed.  The AP goes to unapplied cash, and it then washes out the entry from the cash receipt entered for the vendor refund.  Also, in Lightning, you have to go to the vendor account to enter the cash receipt.  You can't go to "cash receipts' and enter a vendor refund, as Cash Receipts will only find customer accounts.

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  JeaNae Remala

  • June 05, 2024 14:34

  You have to follow a similar procedure to refund a credit memo to a customer.  And then also create the AP for the customer so a check gets cut for the refund.

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