Deposit and record a supplier refund

When you receive a refund from a supplier, you can record it either as a deposit to your account or as a credit to apply to a future AP supplier invoice.

Record a refund that you do not plan to apply to a future AP supplier invoice

When you want to deposit the cash or cheque refund and do not plan to apply them to another AP supplier invoice from the same supplier, how you record this depends on whether or not you already created a debit memo adjustment to account for the refund.

  1. Create an AP adjustment to clear the supplier balance.

    Select Credit memo as the adjustment type and enter the same amount. The credit memo increases the overall amount that you owe a supplier and balances the existing debit memo adjustment.

  2. Apply the adjustment to the supplier balance.
  3. Create an Other receipt to record the refund.

Create an Other receipt to record the refund.

Record a supplier credit to use on a future AP supplier invoice

  1. Create an AP adjustment.

    Select Debit memo as the type. This type decreases the amount that you owe the supplier.

  2. When you pay the next AP supplier invoice from this supplier, apply the debit memo as a credit on the Pay AP supplier invoices page.