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julzdave
Level 1

What is the best way to record a refund from a vendor? When we follow the vendor credit process, it leaves the deposit as Unapplied Cash Bill Payment Expenditure.

 
2 Comments 2
Rustler
Level 15

What is the best way to record a refund from a vendor? When we follow the vendor credit process, it leaves the deposit as Unapplied Cash Bill Payment Expenditure.

IF, if you have a vendor credit entered, then deposit the check, use accounts payable and vendor name as the source account for the deposit.  Then bring up pay bills, select the "bill" the deposit created and apply the credit

 

if you do not have a vendor credit entered, deposit the check and use the same expense account as you used for the purchase as the source account for the deposit.  UNLESS, this purchase was for inventory items, if so, use other income as the source account for the deposit.

Malcolm Ziman
Level 10

What is the best way to record a refund from a vendor? When we follow the vendor credit process, it leaves the deposit as Unapplied Cash Bill Payment Expenditure.

Don't use a Vendor Credit unless you use Accounts Payable for the vendor, as that just puts a credit on account.  Just record the refund as a Bank Deposit, assuming you don't track inventory and did not return inventory

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