Handling a refund from a supplier?

Legacy KB ID: 170


How do I enter in a refund from a supplier?


When you return an item and you are refunded by your supplier, you need to reduce the amount of the expense you originally incurred, or, if an inventory item was involved, update your inventory account for the item(s) you returned. In addition, you need to record the refund you received, typically through a deposit to your bank account. To enter a credit from a supplier: 1) From the Activities menu, choose Enter Bills. Select Credit, and enter the supplier and the amount of the refund. 2) Select an expense account or item and enter an amount. Use the same expense account or item from the bill you originally entered for this supplier. If this is an inventory item, enter the correct quantity and the amount. 3) Click OK. To deposit the refund: 1) From the Activities menu, choose Make Deposits. 2) Enter the name of the supplier in the Received From column and enter the refund amount. 3) Enter Accounts Payable in the From Account column. 4) (Optional) Enter the cheque number and payment method 5) Click OK. To clear the credit from your accounts payable account: 1) From the Activities menu, choose Pay Bills. 2) Select both the credit and deposit created for this supplier (shown as positive and negative entries). 3) Click OK.

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