Creating Vendor Refunds

This article will walk you through how to create a vendor refund.

Note: These instructions assume that you currently show an overpayment or credit on an existing order. See Credits if this is not the case.

1. Record the refund check from the vendor as a Misc. Cash Receipt using suspense as the income account:

Head to Accounting > Money In
Payment Method = Receive Misc
Received From = The Address ID of the vendor giving the refund (if you are unable to locate the vendor, click on the magnifying glass, change the Type to Vendor, and Select)
Check # = REFUND
Amount = the amount of the refund
Description = Refund on Order (add order # here)
Cash Account = Account money is being deposited into

Note: If it’s a vendor refund to the credit card, select the credit card account as the Cash Account.

Click Order Payments
Locate the Items on the Order the vendor refund is for
Enter the amount of the refund as a negative amount (ex. -500.00) in Amount to Apply for the items
Cash Account = Suspense
Payment Code = Manual
Check # = REFUND
Click Create Entries
Head back to Accounting > Money Out
Cash Account = Suspense
Click Post Payments

Pro Tip:

To check the accuracy of your entry:

Always review the balance in your suspense account both before and after your receipt (it should be the same when you finish as it was when you started)
Confirm your cash account has been increased by the amount of the refund
Confirm that the order now shows the correct balance