cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

How do I record an incorrect payment to a vendor? (I paid bill twice) The vendor then issued a refund - how do I record that deposit to offset my incorrect payment?

 
1 Comment
Moderator

Re: How do I record an incorrect payment to a vendor? (I paid bill twice) The vendor then issued ...

Hello there, syoder7802.

 

Once you've overpaid a vendor, it will create an unapplied payment (vendor credit). To offset the incorrect payment, you'll have to deposit the refund, then link it to the unapplied payment. 


First, here's how you can record the deposit:

  1. Click the Plus (+) icon, then choose Bank Deposit.
  2. In the RECEIVED FROM column, choose your vendor.
  3. In the Account field, choose which account you wish this cash back goes to.
  4. Select Accounts payable in the ACCOUNT column.
  5. Under the AMOUNT field, enter the amount you overpaid.
  6. Click Save and close.

Then, here's how you can link the credit to the deposit:

  1. Click the Plus (+) icon.
  2. Choose either Expense or Check.
  3. Choose the vendor's name.
  4. Under the Add to Expense/Check part, add the Deposit and Unapplied Payment.
  5. Click Save and close.

Once done, the vendor's balance will be zeroed out. 

 

I'm just a post away if there's anything that I can help you with. Take care always!

Need to get in touch?

Contact us