Once setup, it is not a hassle to enter the cash receipt and invoice. Remember this method maintains your 1099 vendor totals.
Accounts Payable Invoice Refund Check
To process a refund check from a vendor, the deposit is made and credited to an exchange account (set up this account if there is not one already). Then, the original invoice is modified to credit the job and debit the exchange account. Finally, a zero check is processed to close the invoice. This maintains balance between all applications (AP, JC, CM, and GL) and ensures the vendor 1099 totals (if applicable) are correct.
Create an Exchange Account
Before starting, determine if you have an exchange account for processing refunds. It should be an account not used for any other purpose other than exchanges, and it should net to zero when the entire process is complete.
If there is no exchange account set up, create one in GL > Setup > Prefix/Base. Create an Exchange base account as a short-term asset account and assign it to the balance sheet prefix.
Deposit the Check
NOTE: It is recommended to create refund deposits separate from customer/contract/job-related projects both in the system and to the bank.
Adjust the Invoice
NOTE: If the refund applies to more than one invoice, follow this process on each invoice.
Process a Zero Check
NOTE: If the refund applies to more than one invoice, all related invoices can be processed on one check.
Once setup, it is not a hassle to enter the cash receipt and invoice. Remember this method maintains your 1099 vendor totals.
Accounts Payable Invoice Refund Check
To process a refund check from a vendor, the deposit is made and credited to an exchange account (set up this account if there is not one already). Then, the original invoice is modified to credit the job and debit the exchange account. Finally, a zero check is processed to close the invoice. This maintains balance between all applications (AP, JC, CM, and GL) and ensures the vendor 1099 totals (if applicable) are correct.
Create an Exchange Account
Before starting, determine if you have an exchange account for processing refunds. It should be an account not used for any other purpose other than exchanges, and it should net to zero when the entire process is complete.
If there is no exchange account set up, create one in GL > Setup > Prefix/Base. Create an Exchange base account as a short-term asset account and assign it to the balance sheet prefix.
Deposit the Check
NOTE: It is recommended to create refund deposits separate from customer/contract/job-related projects both in the system and to the bank.
Adjust the Invoice
NOTE: If the refund applies to more than one invoice, follow this process on each invoice.
Process a Zero Check
NOTE: If the refund applies to more than one invoice, all related invoices can be processed on one check.
*Community Hub is the new name for Sage City