Do you ever get refunds from your suppliers for bills that you have already paid in full? video 24.

1. Record a vendor credit for the bill that the refund payment was supposed to be applied to. It is possible called a supplier credit instead of a vendor credit.
2. When you record the deposit, you will use the same deposit window we learned about before. But in the received from field, you will put the name of the vendor. Both of these transactions will show up on the unpaid bills report.
3. Apply the deposit to the credit memo by making a zero dollar payment.

For step 1 go to + New, Supplier credit. In the memo and or the description field enter the bill number that the credit should be applied to. Make sure the Category (expense) is correct. After it’s saved, it will appear on the Unpaid bills report.

For step 2 we go to + New, Bank deposit. Put the date that we are actually depositing the money into the bank account. In the lower section, Add funds to deposit, be sure to put the supplier’s name in the Received from field. Do not put the expense account (electric, water, Internet etc.) The expense was already reduced when we recorded the credit. Accounts Payable should go in the Account field. Enter the dollar amount. Enter any other information, such as the cheque number. Save and close.

Before moving on to the next step, we need to print or save the Unpaid bills report.

For step three, click + New, Pay bills. Filter for all dates and filter for the supplier. For our illustration, we will date this transaction after the other two, perhaps the next day.

Here’s an updated Unpaid Bills report. You correctly do not see the credit or the deposit. Both are gone. Good.