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AjayK76
June 18, 2024
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Vendor Refund Mishap

  • June 18, 2024
  • 2 replies
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I own a funeral home and one of the cemeteries we deal with "screwed up" their billing during a certain month and didn't notify us until later.  I realize the above sentence is a bit confusing.  Basically, they notified us a bit early that they were going to change the prices but those prices were not to go into effect until later.  So we, of course, charged the families that same amount when it was supposed to be lesser.  Anyhow, they send us their bill after each month's burials and cremations.  I enter the bills in for each particular date that we have those services.  And I already paid those bills for that amount.  And then they sent us a letter afterwards mentioning that they overcharged us and will be sending a refund check.  They overcharged us a total of $ 775.00.  They sent us a refund check in the amount of $ 378.00 and credited the remaining $ 397.00 toward a burial case which was originally $1125 but due to the credit, only $ 728.00 is due.

The first thing I tried was to change all the bills to the correct amount and then apply a vendor credit to each case that was affected and then do a bank deposit.  The second thing I tried to do was change all the refunded bills back to the original amount billed and then issue a vendor credit and then create a bank deposit with the account "Accounts Payable" as suggested in a response by an admin on this forum to someone else's question and then "Pay Bills".  But when I got to Pay Bills... who was I supposed to pay and why was it saying the amount was $ 378 times 2?  So then I deleted the Bank Deposit... and now it's saying that only $ 350 is open (when it should be $728) and that $ 378.00 is overdue... ?!?

 

I'm thinking of just deleting all the bills associated with this refund and credit and starting over - but how do I enter the vendor refund to zero out the account?

Best answer by Rainflurry

@AjayK76 

 

Don't delete everything and start over - there's a much easier way.  Create a vendor credit: on line 1, select the category (account) that is the reason for the overcharge and an amount of $775.  On line 2, enter your bank account that the refund check will be deposited to and enter an amount of -$378.  That leaves the vendor credit amount as $397 which can be applied to the bill for the burial case of $1,125, leaving $728 due.  Pay the bill.

2 replies

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RogelioL
June 18, 2024

Let me guide you in entering vendor refund and get this sorted out, @AjayK76.

 

To begin with, I would somehow agree to delete all the bills associated with this refund and credit and start over.

 

Once you've deleted it, we can start again by creating the Bill with an amount of 1125. After this, we can now proceed with making a Bank Deposit:

  1. Navigate to the +New icon, then select Bank Deposit.
  2. On the Add funds to this deposit, add a Vendor.
  3. Choose Accounts Payable in the first field, then add a negative 397 amount.
  4. Add an Expense account in the second field and enter an amount of 775.
  5. Click Save and Close.

 

After this, navigate to the +New icon, then select Pay Bills:

  1. Choose the Bill, then on the Credit Applied field, ensure that the amount is positive 397.
  2. In the Payment field, ensure that the amount is Zero.
  3. Click Save and Close.

Now, the open balance should be 728. You can check this by visiting your vendor's profile.

 

If you need to run particular reports for your vendor, please refer to these articles for guidance on how to run and customize the report: 

Let me know if you need further assistance with your vendor credit. Keep safe.

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AjayK76Author
June 19, 2024

See my response below to the other poster.

Rainflurry
RainflurryAnswer
June 18, 2024

@AjayK76 

 

Don't delete everything and start over - there's a much easier way.  Create a vendor credit: on line 1, select the category (account) that is the reason for the overcharge and an amount of $775.  On line 2, enter your bank account that the refund check will be deposited to and enter an amount of -$378.  That leaves the vendor credit amount as $397 which can be applied to the bill for the burial case of $1,125, leaving $728 due.  Pay the bill.

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AjayK76Author
June 19, 2024

Ok, I must have said this incorrectly.  The $1125 is not the only bill.  There were thousands of dollars of bills but $775.00 was the total refund from numerous bills where we received 11 checks total (see next paragraph).  The $ 1125 is a new bill which is correct and that is the only bill that is open after all bill payments were paid.

So, there were 9 bills where $ 28.00 each was refunded and two bills where $ 63.00 was refunded.  But how they did this was that they gave us a refund check of $ 378.00 and credited the $ 1125 the remaining $ 397 making the balance $ 728.00.

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AjayK76Author
June 19, 2024

Correction:  They gave us refund checks totaling $ 378.00 (9 checks of $ 28 each and 2 checks of $ 63.00 each).

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