ENTERING A VENDOR REFUND CHECK

When there is a credit balance in accounts payable for a vendor, and the vendor issues a refund check to us to clear the credit, record as follows:

AP Module

“Tasks”, “Record Manual Check”

In File selection window double click on “New Unposted”, then double click on “History”

Select “AP Refund clearing account” as bank account

Enter the next available check number from clearing account (you can inquire on the check register for this bank account to get this information)

Enter current date

Enter “0" in amount

On first line of top entry grid, enter an invoice called “Vendor Return”, enter current date, enter the invoice amount as a positive figure, and in description area enter the vendor’s check number. “Refund ck #xxxx”

On distribution level of this invoice enter GL account # for the AP clearing account, the amount should be positive as listed above but be sure to remove any discount that may automatically appear. Accept this invoice.

On second line of top entry grid, click “list” and select the open invoice number(s) that reflects the credit on vendor’s account.   Accept this invoice.

Click to record the check (or print check) let it print this zero check on plain paper.   This check entry will clear the accounts payable account of the credit and will create a debit in the general ledger for the AP clearing account.

You now go into the CM module and through “edit register” enter a deposit to the “General” checking account (which is your debit) and your credit account is the AP clearing account #1-00-1095.

The logic for this process is you need to clear the credit from open payables by “paying” it. You pay it with clearing account which creates a debit in the GL, then you’re bank deposit credits the clearing account.

ENTERING A VENDOR REFUND CHECK

When there is a credit balance in accounts payable for a vendor, and the vendor issues a refund check to us to clear the credit, record as follows:

AP Module

“Tasks”, “Record Manual Check”

In File selection window double click on “New Unposted”, then double click on “History”

Select “AP Refund clearing account” as bank account

Enter the next available check number from clearing account (you can inquire on the check register for this bank account to get this information)

Enter current date

Enter “0" in amount

On first line of top entry grid, enter an invoice called “Vendor Return”, enter current date, enter the invoice amount as a positive figure, and in description area enter the vendor’s check number. “Refund ck #xxxx”

On distribution level of this invoice enter GL account # for the AP clearing account, the amount should be positive as listed above but be sure to remove any discount that may automatically appear. Accept this invoice.

On second line of top entry grid, click “list” and select the open invoice number(s) that reflects the credit on vendor’s account.   Accept this invoice.

Click to record the check (or print check) let it print this zero check on plain paper.   This check entry will clear the accounts payable account of the credit and will create a debit in the general ledger for the AP clearing account.

You now go into the CM module and through “edit register” enter a deposit to the “General” checking account (which is your debit) and your credit account is the AP clearing account #1-00-1095.

The logic for this process is you need to clear the credit from open payables by “paying” it. You pay it with clearing account which creates a debit in the GL, then you’re bank deposit credits the clearing account.