How to enter and apply a vendor refund

Section 1: Create a Vendor Credit Memo (if you already have a prepayment or overpayment, skip to Section 2)

1. Select Tasks, and select Vendor Credit Memos.
2. Create a Vendor Credit Memo for the amount of the refund, and then assign it a credit memo number.
3. Click Save.

Section 2: Create a refund Receipt(s)

1. Select Tasks, Receive Money.
2. Change Customer ID drop-down to Vendor ID.
3. Select the appropriate Vendor from the list.
4. Enter the amount of the refund and a short description if desired.
5. Enter a reference number and click Save.
   Note: When entering the check number value, you do not need to use an actual check number from your normal sequence.

Section 3: Apply the Vendor Credit Memo to the Receipt(s)

1. Select Tasks, and select Payments.
2. Select the Vendor ID.
3. The Apply to Invoices tab should be indicated.
4. Check the Pay box for the Vendor Credit Memo.
5. Select Pay box for the Receipt. Note: Checking the Pay box will populate the total amount for the line item in the Amount Paid field.
6. Verify the total amount of the payment being issued is 0.00 creating a zero dollar payment.
7. Enter a check number to identify the transaction, and then click Save.

Note: When creating a vendor refund, you should not void or delete the original check.