Deposit and record a vendor refund

When you receive a refund from a vendor, you can record it either as a deposit to your account or as a credit to apply to a future bill.

Record a refund that you do not plan to apply to a future bill

When you want to deposit the cash or check refund and do not plan to apply them to another bill from the same vendor, how you record this depends on whether or not you already created a debit memo adjustment to account for the refund.

  1. Create an AP adjustment to clear the vendor balance.

    Select Credit memo as the adjustment type and enter the same amount. The credit memo increases the overall amount that you owe a vendor and balances the existing debit memo adjustment.

  2. Apply the adjustment to the vendor balance.
  3. Create an Other receipt to record the refund.

Create an Other receipt to record the refund.

Record a vendor credit to use on a future bill

  1. Create an AP adjustment.

    Select Debit memo as the type. This type decreases the amount that you owe the vendor.

  2. When you pay the next bill from this vendor, apply the debit memo as a credit on the Pay bills page.