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Correct a customer refund issued as a vendor check

I have a client using QB Desktop 2016.   The client is a contractor.  He received a check from a bank as the final payout of a job he completed for his client.  The bank issued the check for more than what was due, and the client deposited the check.  He then notified his client of the overpayment and arranged to send his client a check for the overage.  However, when he did this he created a Vendor account for his customer and issued the check through A/P.

 

This happened in July 2018 and I was not aware of it when I worked on his books in August and September.  So we have a credit on the customer account that needs to be adjusted and a vendor check that was written back to the customer and shows up in A/P. 

 

What is the best way to resolve this?  Should I cancel the vendor payment?  or is there a simpler/better way to handle this

 

Thank you

 

Elliot

 

Best answer 02-14-2019 02:40 AM

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Established Community Backer ***

Re: Correct a customer refund issued as a vendor check

so if I understand this, you posted an overpayment which created a customer credit

 

then a vendor was created and a check issued

 

edit the check, change the expense account to accounts receivable and enter the correct customer name, then use receive payments select the "bill" the check created and apply the credit.

make the vendor inactive

5 Comments
Established Community Backer ***

Re: Correct a customer refund issued as a vendor check

Edit the check and use the job expense account as the expense for the check, do not create a customer credit with the check.  This is just  a refund for over payment.  Make the vendor inactive after insuring the vendor balance is zero.

Frequent Explorer *

Re: Correct a customer refund issued as a vendor check

I understand what you are suggesting, but I already show a credit balance on the customer's account.  How do I adjust that credit balance back to $0?

 

 

Established Community Backer ***

Re: Correct a customer refund issued as a vendor check

when you edit the check ,remove the customer name

Frequent Explorer *

Re: Correct a customer refund issued as a vendor check

Thank you for the reply, but it's a little more complicated than that.

 

The customer is entered as the Project Name (this project was for a franchise, so it's identified by the franchise name and location).

 

The check was written to the owner of the franchise, and his name was set up as the Vendor.

 

So there is a customer name and a vendor name and they are not the same.

 

 

 

 

Established Community Backer ***

Re: Correct a customer refund issued as a vendor check

so if I understand this, you posted an overpayment which created a customer credit

 

then a vendor was created and a check issued

 

edit the check, change the expense account to accounts receivable and enter the correct customer name, then use receive payments select the "bill" the check created and apply the credit.

make the vendor inactive