Correct a customer refund issued as a vendor check

GolfNut72 · ‎February 12, 2019

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

Rustler · ‎February 14, 2019

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

View solution in original post

Rustler · ‎February 13, 2019

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.

GolfNut72 · ‎February 13, 2019

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?

Rustler · ‎February 13, 2019

when you edit the check ,remove the customer name

GolfNut72 · ‎February 13, 2019

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.

Rustler · ‎February 14, 2019

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

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Correct a customer refund issued as a vendor check