Recording a vendor credit can be challenging, Clio. Rest assured, I'm here to help you record these transactions accurately
Since your situation involves duplicate vendor payment, a credit note, and a refund, here's a structured way to handle each step, including linking the bank transactions.
Step 1. Record the Duplicate Payment:
- Enter the vendor Bill as usual for the initial payment.
- Record the second, mistaken payment by creating an Expense or Check transaction for the vendor, making sure it links to your Accounts Payable account. This keeps it as a payable entry on your balance sheet,
Step 2. Record the Credit Note from the Vendor:
- Go to the +New icon, then select Suppliers Credit to enter the credit note details.
- Make sure to select the same Accounts Payable account and vendor that you used for the duplicate payment.
Step 3. Record the Refund from the Vendor:
- Click the +New icon, then choose Bank Deposit and record the amount refunded by the vendor.
- For the account, choose Accounts Payable, and make sure it's assigned to the correct vendor.
Step 4. Link Transactions and Reconcile Bank Feed:
- Click the +New icon, then select Pay Bills and select the vendor.
- Apply the Vendor Credit against the duplicate payments to offset it.
- Then, apply the Bank Deposit (the refund) to close out any remaining balance.
When reviewing your bank feed, you'll see both the duplicate payment and the vendor refund. These should be linked to the recorded transactions, so you can categorise them correctly and keep your reconciliation accurate.
If you have further questions about recording these transactions, please don't hesitate to ask. Keep safe,
