Posted by: IS | August 17, 2008

Vendor Refunds

To process a refund from a vendor follow these steps:

(Currently,yo have a vendor ivoice posted, with a payment fully applied. Both are in History – the Vendr refunds you part or full payment for whatever reason)

Enter and post a Debit Note against the Creditors account for the value of the refund. Don’t analyse VAT. GL Distributions are Credit Payables, Debit a ‘Refunds Due From Vendor’ account.

Then enter a sundry receipt (Transactions >> Financial >> Bank Transactions…and select Receipt as the transaction type. GL Distributions are Deit Bank and Credit ‘Refunds Due From Vendors’ Account.

Functionality to allow a user enter a cash receipt against a Vendor Account would resolve this (possibly along the lines of Customer Refunds)…and you’d be surprised the amount of times I am asked how to account for the above…and the amount of times users post a Payables Document and distribute it to their GL Bank account and can’t understand why their Bank Rec won’t work!

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