Vendor Refund to a Credit Card

A few setups are involved before processing any Vendor Credit Card Refunds.

Create a new G/L Account

1. Create a G/L Account to use for moving the credit from the source vendor to the credit card vendor. If the process is completed correctly, this G/L Account will always have a zero balance.

Open the vendor record where the credit memo resides.

1. On the vendor tree, click on Bills, right-click, and select New Bill.
2. In the Reference #field, type a reference; for example, "Refund transfer to AMEX".
3. In the Amount field, enter the amount of the credit memo.
4. On the Expense tab, use the GL Account you created on the previous page and enter the amount in the rate field.
5. Click Save when finished.

6. Next, apply the credit memo to the bill you just created. On the vendor tree, highlight Credits, right-click and select Apply Credits.

The Pay Bills form opens.

7. Click on the Vendor Credits tab and select the checkbox to the left of the credit to apply to the bill.

8. Click on the Vendor Bills tab and select the checkbox to the left of the bill created in steps 1 through 5 above. The total amount at the bottom of the form should be zero.
9. Click the Save button.

Open your credit card vendor.

1. On the vendor tree, click on Credits, right-click and select new credit.
2. In the Reference #field, type a reference; for example "Refund from Images Direct".
3. In the Amount field, enter the amount of the credit card credit from your vendor.
4. On the Expense tab, use the GL Account you created on the setup page, and enter the amount in the rate field.
5. Click Save when finished.

If all steps in this process were followed, when viewing the account register for your new GL Account for transferring credits, the balance should be zero.