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How would I post monies returned by a supplier in the AP module please?
Here is the scenario
1. A pre-payment is made to the supplier for $100 which I enter as a manual payment
2. The invoice is received by the supplier for $90 which I enter as an Invoice through Transaction entry.
3. Since the amount of the invoice is less than the payment, the supplier returns $10 in cash to me.
How do I reflect this entry in GP to recognise that the supplier's balance is now zero and the physical cash I've received in the bank account.
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I-thomas' response is one of the two ways we handle a refund. Another option is to utilize the customer/vendor transaction. If you anticipate this type of transaction (ie, whereby the vendor will send cash to your organization more than once), you could setup a "customer" card for the vendor. Then, you can perform a transaction which will automatically reclass the overpayment or balance from the vendor subledger to the customer/account receivable subledger. I operate in GP 9, so I apologize for not knowing the path to take in newer versions. I add the customer card first, then I go to Cards>Sales>Customer/Vendor (you can create the new id on the fly after going to the relationship screen and use the Create Customer button). In this screen, I then select the vendor id and the associated customer id (and currency if you use multi-currency), then hit OK. Once the relationship is established, anytime you have a balance due your organization and you receive cash, you can then perform a transaction which reclassifies the balance. I go through Transactions>Sales>Customer/Vendor Transactions. At the top of the screen, you then select your customer (or vendor) which should automatically populate the other id (so, if you enter the customer id, the vendor id should automatically appear). You then choose the date for the transaction, then select the option (in this case, it would be "Transfer to Receivables") which should then show your open balance on the vendor. Select the amount, then hit Post. GP will automatically move the value to A/R. You can now post the cash received like you would any other A/R item. Your vendor account is zeroed and once cash is posted to the A/R customer, A/R should be zero.
This same method can be used if your organization needs to refund a customer (except you would setup a vendor id and at the transaction level, you would transfer to payables).
Hope this helps.
Best regards,
Dale Coulthard
Compliments of Victoria Yudin (victoriayudin.com/.../payables-return-transactions-in-dynamics-gp)
If all you have entered so far is a payment to the vendor, you would need to enter 3 transactions now (this is assuming you are using the Bank Rec module):
1. Payables (or POP) invoice for the actual amount of goods received.
2. Payables invoice or misc charge for the difference (which should be the amount of the check the vendor gave you). For the GL distributions on this debit a Suspense account and credit Accounts Payable.
3. Bank Transaction with a type of Enter Receipt for the amount of the check the vendor gave you. The GL distributions here will debit Cash and credit the Suspense account you used in step 2 above.
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