Choose an option below to enter a vendor refund. You can enter the amount as a miscellaneous cash receipt in Accounts Receivable, Job Cost, or Cash Management if the refund meets the required criteria. If the refund doesn't meet the criteria, enter the refund through Accounts Payable.

Enter a refund in Accounts Payable

1. Enter a credit invoice for the refund amount. If you’ve entered a credit invoice, skip this step:
   The vendor owes you the refund amount. Enter a credit invoice to reduce Job Costs or General Ledger balances.
   1. In Accounts Payable, from Tasks, select Enter Invoices.
   2. Enter the vendor ID.
   3. Enter an invoice number for this credit invoice. The invoice number will need to be unique. You may want to use the original invoice number and add "CR" or "RFD" to indicate it’s a credit/refund.
   4. Enter the refund amount as a negative number, including retainage, discounts, or deductions. If the refund is job-related, enter the commitment, job, cost code, and category information on the distribution line. Enter a distribution line for each impacted job.
   5. Accept the cost or expense account that prefills or enter the expense account that you want to reduce.
   6. Enter refund amounts on the distribution grid as a negative number, including retainage, discounts, or deductions.
   7. Enter a distribution for the next job. If there are no more distributions, accept and post the credit invoice.
      Note: If you want to reduce the commitment amount and not just the amount invoiced, enter a commitment change order in Job Cost.
2. Enter a positive invoice to offset the credit invoice:
   To prevent the credit invoice from affecting your Accounts Payable balance, enter a positive invoice equal to the credit invoice. Don’t include any job cost information. Use a General Ledger clearing account as the expense account.
   1. In Accounts Payable, from Tasks, select Enter Invoices.
   2. Enter the vendor ID.
   3. Enter an invoice number for this clearing invoice. The invoice number will need to be unique. You may want to use the original invoice number and add "CLR" to indicate it’s a clearing invoice.
   4. Enter the full refund amount as a positive number. Enter the accounting date and the rest of the invoice information.
   5. On the distribution grid, enter a General Ledger clearing account as the expense account in the Account column. If you use prefixes, choose the previously used prefix.
   6. Enter the refund amount for this distribution as a positive number, including all retainage, discounts, or deductions. Don’t include any Job Cost information.
   7. Click Exempt. (This step is important to ensure the 1099 total will be correct.)
   8. Accept the invoice.
3. Record a manual check or an EFT payment to pay the credit invoice and positive invoice:
   This payment has a zero amount and changes the status of both invoices to paid.
   1. In Accounts Payable, from Tasks, select Record Manual/Print Quick Checks.
      • If you don’t want to use a check number, select EFT Payment as the payment type and assign a Reference Number instead
   2. Use your Accounts Payable bank account and enter $0.00 as the amount. Enter the remaining check information. Press ENTER or TAB to move the cursor to the invoice grid.
      • If you choose Manual Check for the payment type, you must use a check number from your operating bank account
      • This manual check should be for a zero amount. You can reconcile it as part of your next bank reconciliation
      • If you don't want to use a check number from your actual bank or the EFT Payment type, use another bank. Set up a bank account specifically for vendor refunds and use that bank account to pay the manual check
   3. Click List and select the credit invoices related to the refund (that is, the "CR"/"RFD" invoice). Accept the credit invoices.
   4. Click List and select the positive invoice (that is, the "CLR" invoice). Accept the positive invoice.
   5. The sum of your credit invoices and the positive invoice should be zero. Accept your check, finish, and post.
4. In Cash Management record a deposit for the refund check:
   When you enter the deposit, use the same clearing account as the expense account for the offsetting invoice. This brings the clearing account balance to zero.
   1. Go to Cash Management, Tasks, Edit Register to record the refund check from the vendor as a deposit.
   2. Enter a General Ledger clearing account as the credit account for the deposit. This must be the same account used as the clearing account for the previous positive invoice.
   3. Finish and post your deposit.

Enter Misc Cash Receipt

Enter the amount as a miscellaneous cash receipt in Accounts Receivable, Job Cost, or Cash Management if the refund meets the criteria.

• The vendor isn’t a 1099 vendor
• All invoices in Accounts Payable are paid (including retainage amounts)
• Reports with amounts paid to the vendor don’t need to include the refunded amount
• The amount doesn’t need to affect a commitment on a job

If the refund affects a job, use a Misc JC Receipt. If the refund doesn't have a job, use a Misc GL Receipt.

How do I enter a cash receipt to a job without an invoice in Accounts Receivable?

How do I enter a Miscellaneous JC cash receipt in Accounts Receivable?

How do I enter a Miscellaneous GL cash receipt in Accounts Receivable?

What do I do when my AP vendor is also my AR customer or my AR Customer pays my AP Vendor?