When you return items to a vendor, receiving refunds for purchases made with cash or checks can be handled by creating refund records. (Note: For purchases made with a credit card, refunds should be handled by creating a new, negative disbursement.)
Be sure to follow your company's internal policies for returns and refunds, as well as the vendor's policies. We recommend that you make all the needed entries and adjustments so all your records in aACE reflect reality. This will help ensure your accounting / inventory balances remain accurate. Keep these guidelines in mind:
- Log return shipments to the vendor so your inventory balances stay accurate.
- Create the necessary purchase adjustments so the entire transaction balances (e.g. to account for credit coming from your vendor) because these entries affect accounting as realized expenses. Vendor refunds are typically booked against the parent record in the Purchases module, but can also be processed from the Receipts or Disbursements modules.
- Update the related PO(s) so anticipated expenses are accurate and your totals for inventory-on-order are correct.
Note: After updating these records, it is also possible to hold the refund as a credit to apply to a purchase later.
Vendor Refunds from the Purchases Module
When you start at the original purchase record, it becomes the parent record so you can easily manage the other related transactions.
- Navigate to Menu > Accts Payable > Purchases.
- Use the Quick Search bar to locate the desired purchase record.
- On the detail view, click the Refunds tab.
- Click the Plus () icon.
- On the new refund record, enter the details:
- Payment Info — Enter the vendor, the amount, and the refund method.
- Bank Info — Enter the GL Account the refund will be deposited into and the date of the deposit.
- Purchases — Enter the original purchase ID(s) this refund will apply to. If necessary, click the Search () icon to locate the information.
- Click Save, then Post.
The refund record appears on the Refunds tab.
Vendor Refunds from the Receipts Module
- Navigate to Menu > Accts Receivable > Receipts, then click New > Refund.
- On the new refund record, enter the refund information (as outlined above).
- Click Save and Post.
Vendor Refunds from the Disbursements Module
- Navigate to Menu > Accts Payable > Disbursements, then click New > Refund.
- On the new refund record, enter the refund information (see above), including the original invoice ID(s) this refund will apply to.
- Click Save and Post.