I can't speak to your chosen solution, but to do this with a Credit Note:
1. Raise the Credit Note, assigning the line items to their proper
Expense accounts. This will result in Credit entries (right column) in
those affected Expense accounts, where normally Expenses are Debits(left
column)
2. Post it to A/P. This will result in a Debit entry (left column) in
the A/P account, where normally, you see Credit entries (right column).
e.g., a typical posted Credit Note from a Vendor will result in:
Dr. Liabilities:Accounts Payable
Cr. Expenses:stuff
3. 'Pay' the Credit Note with your Credit Card account. This is the
transaction which is the actual refund to your card. If you have already
entered this refund manually, simply right-click it and 'Assign as
Payment' searching for the Vendor and selecting the Credit Note to clear
it. This will result in a Credit entry (right column) in the A/P
account, with a Debit entry (left column) in the Credit Card account.
e.g., a typical refund on a Credit Card against a Vendor Credit Note
will result in:
Dr. Liabilities:Credit Card
Cr. Liabilities:Accounts Payable
----
I personally only use Debit/Credit labels because I find them consistent
and easier to understand than the various 'slang' terminology of the
informal labels. (which don't always make sense in every situation)
Regardless of the terms used for the column headings, the left/right
nature does not change. (hence why I specified which they should be)
Regards,
Adrien
On 12/7/23 1:21 PM, Eric Chapman wrote:
Story: I bought some items locally in September. I returned a portion of
them in November and the vendor was willing to issue a refund for the
items I decided I did not need. The refund was made to my credit card.
I tried to use a "Credit Note", but could not figure out how to make it
work. Is is just the same as an invoice, except that it automatically
puts the amount in the "Refund" field? What other differences are there?
When I checked my vendor report for that vendor, I had mismatches and
amounts in the aging columns.
Therefore I just deleted the "Credit Note" and input the return/refund
as if it were a bill (invoice from vendor). I put in negative amounts.
Worked fine. I clicked "Pay" and "paid" the negative amount to the
credit card. Everything looks correct to me.
Is there a reason why this methodology is not good? Any other advice?
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