Modules»Accounts Payable»Vendor Credit Balance - Vendor…
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Last modified on 12/17/2015 3:24 PM by User.

Vendor Credit Balance - Vendor Sends a Check

Situation:  A vendor has a credit balance and sends a check to satisfy the credit.




Step 1.  Create a voucher in Voucher Entry and Editing for the amount of the check – which should be the credit balance on the account.  Go to:

  • Accounts Payable (Module 3)
    • Voucher entry & editing (Task 1)
      • Enter New Transaction Record  (Sub-task 1).  See below for step-by-step instructions:
        • Voucher #: 000703 (system generated number)
        • Vendor #: Enter number of vendor
        • Invoice #: Enter something that is ‘meaningful’ to you
        • Inv date: 09/03/xx (MUST be a current date)         
        • Inv amount: 100.00  (enter the amount of the check)        
        • Due/chk date: 09/03/xx (same date as in #3)
        • Reference#: User define information  i.e. REFUND CHECK
        • Division#: 01
          • # of payments 1                           
          • Exp Acct#        Amount      Total-dist:
          • 913-00-01       100.00     100.00  (make note of the GL # as the exact same account number must be used in the Step 2)

Note: Run an edit list (using Sub-task 4), if everything is OK, then post the entry (using Sub-task 5)



Step 2:   Apply New Voucher to the Credit Voucher(s) by using Apply AP Credits (Task 4 in A/P module).  Using Task 27 (Vendor Account Inquiry), get the voucher numbers for the positive (new) and negative vouchers.  Use the voucher numbers in Task 4 – AP Credits.



Step 3. Enter the vendor’s refund check into Cash Entry and Editing  (Task 2 in AR)  Go to:

  • Accounts Receivable (Module 2)
    • Cash/Receipts Entry and Editing (Task 2)
      • Enter New Cash Record (Sub-task 1).  See below for step-by-step instructions.
        • TRX number: 000032 (System generated)
        • Trx type: 8 (type is Misc.)                                      
        • Customer #: 99999 (use customer number if the vendor is also a customer, otherwise use #99999 and type in the vendor’s name) 
        • Recv date: 09/03/xx (MUST be in the current month…same date as Step 1)
        • Division #: 01
        • G/L act #: 9130001  (use the identical GL account # used in Step 1)
        • G/L act $: 100.00 (enter the amount of the check)


Run an edit list (using Sub-task 4);   If this is the only transaction on the edit list, the “Total Amount Received” will be the amount of the check from the vendor, and the “Total Change to A/R” will be zero. If everything is OK, then post the entry (using Sub-task 5). 



The Effect:


The G/L will be affected as follows:

                                    Debit    Credit

Selected GL acct          $100

AP                                           $100 (a vendor’s ‘credit’ balance, is considered a ‘debit’ in the AP G/L account)

Cash                            $100

Selected GL acct                      $100