How to record a vendor's cash, check, or credit card refund

Enter a 4-2 Accounts Payable credit memo

1. Open 4-2 Payable Invoices/Credits.
2. In the Invoice#, enter the original invoice number and add "CM" (Credit Memo) at the end.
3. Enter the Order# and Subcontract# cells if they apply.
4. Enter the Vendor.
5. Enter the Job.
6. Enter a brief Description.
7. In the Invoice Date cell, enter the date of the vendor's credit.
8. In the Due Date and Discount Date cells, press enter.
9. From the Status menu, select 1- Open.
10. From the toolbar, select the correct posting period.
11. In the grid:
    • Enter -1 in the Quantity cell
    • In the Price cell, enter the refund amount
    • In the Account cell, enter the expense or liability account number
    • Click File, Save.  If the Job Costs entry window displays, enter the negative Job cost information

Enter a 4-2 Accounts Payable (refund) invoice for your Checking or Credit Card account

1. Open 4-2 Payable Invoices/Credits.
2. In the Invoice#, enter the vendor's refund check number.
3. Leave the Order# and Subcontract# cells blank.
4. Enter the Vendor.
5. Enter the Job.
6. Enter a brief Description.
7. In the Invoice Date cell, enter the deposit date of the vendor's refund.
8. In the Due Date and Discount Date cells, press enter.
9. From the Status menu, select 1- Open.
10. From the Type menu, select 2-Memo.
11. From the toolbar, select the correct posting period.
12. In the grid:
    • Enter 1 in the Quantity cell
    • In the Price cell, enter the vendor's refund amount
    • Enter the checking or credit card account number in the Account cell
    • Click File, Save, then apply this invoice to the credit memo entered earlier, and print a zero-dollar check

Edit the vendor's 1099 balance to reflect the refund

1. Open 4-4 Vendors Accounts Payable.
2. In the data control text box, enter the vendor number.
3. From the menu bar, click Options, 1099 Balance Startup/Adjustment.
4. In the Startup/Adjustment Date box, enter the date.
5. In the Startup/Adjustment Amount box, enter the vendor refund as a negative amount. Click Save.

How do I apply an Accounts Payable credit to an AP invoice?