I received a cash refund for returned materials. How do I apply that vendor credit to my cash account?

Hello hunsuckerjk,

Let me guide you on how to apply the vendor credit to your cash account.

Since you've received a cash refund for the returned items, you'll have to enter a deposit transaction to your cash account. Then, link the deposit to the vendor credit.

Here's how:

To deposit the cash refund to the cash account:

1. Select the Plus Icon (+) at the top, then Bank Deposit.
2. Under Account, choose Cash account.
3. Scroll down to the Add other funds to this deposit section.
4. Under the Received from, select or enter the vendor name.
5. In the Account field, choose Accounts Payable.
6. Enter the check amount.
7. Select Save and close.

To link the deposit to the vendor credit:

1. Select the Plus Icon (+) at the top, then Expense or Check.
2. In the Choose a payee drop-down, select the vendor name.
3. Leave the Reference / Check #, Date, Amount and Memo fields blank.
4. From the Add to Expense or Add to Check section, select Add for the outstanding vendor credit and deposit.
5. Select Save and close.

Here's an article for more the detailed steps: Handle vendor credits and refunds.

That should do it. If you need any further information, please don't hesitate to leave a comment below. I'm always happy to help.