Record a vendor refund check

Summary

Sage BusinessWorks supports multiple methods for recording vendor refunds depending on audit and reporting needs. Choosing the correct refund method ensures accurate General Ledger (GL), Accounts Payable (AP), and Cash Management (CM) balances.

Description

Select one of the three options below to record your vendor refund.

Resolution

Deposit the vendor refund without audit history

Use this method when you don’t need an AP audit trail.

  1. Go to CM, Transactions, Enter Bank Transactions.
  2. Select Deposit as the transaction type.
  3. Deposit the vendor refund check.
  4. For 1099 vendors, manually edit the vendor's 1099 totals to reflect the refund.

Record the refund as an open credit

Use this method when you need a full AP audit history.

Post a credit memo as an open credit

  1. Go to AP, Invoices, Credit Memos.
  2. Post the credit memo as an open credit.
  3. Use the same General Ledger account as the original invoice.

Post a debit memo to record the refund

  1. Go to AP, Invoices, Debit Memos.
  2. Select Apply to Open Credits.
  3. Use the same General Ledger account as the original invoice.
  4. Post the debit memo.

Deposit the refund check

  1. Go to CM, Transactions, Enter Bank Transactions.
  2. Select Deposit.
  3. Distribute to the same General Ledger account as the original invoice.
  4. Select the cash account.
  5. Enter the refund amount.
  6. Post the bank transaction.

Record the refund as a negative invoice

Use this method when the refund relates directly to a specific invoice.

Enter a negative invoice

  1. Go to AP, Invoices, Enter.
  2. Select the vendor and enter the invoice date.
  3. Enter the invoice amount as a negative value.
  4. Use the same General Ledger account as the original invoice.
  5. Post the invoice.

Post a debit memo to record the refund

  1. Go to AP, Invoices, Debit Memos.
  2. Select Apply to Invoices.
  3. Select the negative invoice.
  4. Use the same General Ledger account as the original invoice.
  5. Post the debit memo.

Deposit the refund check

  1. Go to CM, Transactions, Enter Bank Transactions.
  2. Select Deposit. 
  3. Distribute to the same General Ledger account as the original invoice.
  4. Select the cash account.
  5. Enter the refund amount.
  6. Post the bank transaction.

NOTE:

For 1099 vendors, manually edit the vendor's 1099 totals to reflect the refund.

 

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Solution Properties

Solution ID
222924350018741
Last Modified Date
Mon Apr 27 21:14:34 UTC 2026
Views
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