Thank you for getting back here at the Community, @mrosefelt.
I am here to provide detailed steps for depositing your return and how to offset your credit memo in Accounts Payable.
To deposit your returned check, make the account as the Accounts Payable (A/P). Next, to offset your credit memo you'll need to Pay Bills.
Here's how:
Record a Deposit of the vendor check:
- Go to the Banking menu, then select Make Deposits.
- If the Payments to Deposit window appears, select OK.
- In the Make Deposits window, select the Received from drop-down and choose the vendor who sent you the refund.
- In the From Account drop-down, select the appropriate Accounts Payable account.
- In the Amount column, enter the actual amount of the Vendor check.
- Enter the remaining information in the Deposit.
- Select Save & Close.
Record a Bill Credit for the refunded amount:
- Go to Vendors, then select Enter Bills.
- Select Credit and enter the Vendor/Contractor name.
- Select the Expenses tab and enter Accounts on the original bill.
- Enter the amount for each Account then select Save and Close.
Link the deposit to the Bill Credit:
- Go to Vendors, then select Pay Bills.
- Check the Deposit that matches the Vendor check amount.
- Select Set Credits and apply the Bill Credit you created earlier, then select Done.
- Select Pay Selected Bills, then select Done.
Furthermore, I'm adding this helpful article as your reference in setting up direct deposit for your contractors: Set up and manage direct deposit for your contractors.
Feel free to return to this post if you have other concerns or follow-up questions regarding the returned paycheck and offsetting your credit memo. I'll be here to provide further assistance.
