Vendor Refunds

Vendor Refunds

A Vendor Refund document records refunds received from a vendor due to returned goods or services, overpayments, or billing errors. It reduces the quantity of received goods or services, adjusts inventory balances, and updates the accounts receivable.

Vendor Refunds can be created based on a paid Bill, with most fields auto-populated, or manually entered from scratch.

A Refund Receipt can be generated after creating a Vendor Refund to acknowledge and track the actual cash or bank receipt of the refunded amount, ensuring accurate updates to financial records and account balances. This document records the receipt of funds from a vendor, such as a refund for a returned product or an overpayment.

Viewing the List of Vendor Refunds

To view the list of Vendor Refunds:
  1. Navigate to Purchases > Purchase Returns and Vendor Credits.



From the Purchase Returns and Vendor Credits List View, you can:
  • Create a new or copy a Vendor Refund.
  • Generate a Refund Receipt.
  • Email or Print a Vendor Refund.
  • View related details, including: Transactions, General Journal, Inventory Journal, and Audit Logs.
  • Attach files to a selected Vendor Refund.
  • Export the Vendor Refund List to Excel, PDF, or other formats.
  • Manage columns: add, remove, or reorder.
  • Refresh the Purchase Returns and Vendor Credits List.
  • Create multiple custom views using: Filters, Sorting, Ordering, and Conditional Appearance Settings.

Viewing an Individual Vendor Refund

To view a specific Vendor Refund:
  1. Navigate to Purchases > Purchase Returns and Vendor Credits.
  2. In the Purchase Returns and Vendor Credits List View, double-click the desired Vendor Refund.



From the individual Vendor Refund, you can:
  • Edit the Vendor Refund.
  • Generate a Refund Receipt.
  • Email or Print the Vendor Refund.
  • View related details, including: Transactions, General Journal, Inventory Journal, and Audit Logs.
  • Attach files to the Vendor Refund.

Creating a New Vendor Refund

To create a new Vendor Refund:
  1. Navigate to Purchases > Purchase Returns and Vendor Credits.
  2. Click Create > New, or generate the Vendor Refund from a paid Bill.
  3. Fill in the necessary details:
    Main Tab:
    • Vendor: Select from the drop-down list. If the vendor has an open Bill, a popup will appear asking you to apply the memo/return/refund. To create an independent refund, close the popup.
    • Date: Adjust as needed.
    • Vendor Refund #: Enter manually or let the system auto-assign.
    • Type: Select Refund.
    • Reference Number (RMA/Ref #): Add additional references if necessary.
    • Refund Amount: Enter the refund amount you will receive from the vendor.



  4. Shipping Tab:
  5. Accounting Tab:
    • Specify the A/P Account.
    • Specify the A/R Account.



  6. URL Tab:
    • Add a URL for reference, such as supporting documentation or vendor portals.



  7. Memo Tab:
    • Add an External Memo (visible on printed memos) or Internal Memo (internal use only).



  8. Line Details Table
    • Items Tab: Adding Product/Service Items.
      This option helps specify which products or services the memo applies to, ensuring proper inventory or service cost adjustments. For example, if returning goods, the inventory levels and associated costs are updated accurately.

      • Click Add to include items to return.
      • Enter Item from the drop-down.
      • Specify details: Quantity, UoM (Unit of Measure), and Cost.
      • Adjust the Return From Location, Reason Code, Project, or Class as needed.



    • G/L Accounts Tab: Adding G/L Accounts.
      Adding GL accounts allows for direct allocation of the credit to specific expense, liability, or revenue accounts. This ensures that the vendor refund aligns with your chart of accounts and maintains accurate financial reporting.

      • Click Add to include GL Account lines.
      • Enter the GL Account code or description, Amount, Line Memo (optional), and Assign to a Project or Class (optional).



  9. Save changes using Save or Save and Close.

Creating a Vendor Refund from a Paid Bill

Vendor Refunds may or may not be associated with a Bill. To associate a Vendor Refund with a Bill:
  1. Navigate to Purchases > Bills.
  2. Select the relevant record.
  3. Click Create > Vendor Refund > Set the type to Refund. Fields will auto-fill based on the selected Bill.


Accounting Impact of Vendor Refund

Recording a Vendor Return creates the following transactions in the General Journal:
  • Debits: Accounts Receivable.
  • Credits: Expense Account or Inventory Account, depending on the nature of the refund/return (e.g., service, inventory, or adjustment). Tax Payables.

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