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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / How to return payment ...
Microsoft Dynamics GP (Archived)

How to return payment from vendor again an advance payment

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Posted on by Community Member Microsoft Employee

Dear Friends:

I need some help in entering a return payment from a vendor again my advance payment. Let me put the case for you and a solution i adopted, I have some concern on my solutions therefore i need your help.

Advance Payment: $200

Payable (Dr)

Cash / Bank (Cr)

To get the payment back without invoice i entered a return with a payment as well

Return: $200

Purchase (Cr)

Cash /  Bank (Dr)

If i create a dummy invoice and knockoff with payment then my all account ledger will be ok.

Inovoice ($200)

Purchase (Dr)

Payable (Cr)

I like to know if there is any other better way arround to entered these transactions. With that my return will always remain open how to apply or knockoff this return and with what document. 

Regards,

Faisal Ikram

*This post is locked for comments

  • Victoria Yudin Profile Picture
    Victoria Yudin 22,766 on at
    Re: How to return payment from vendor again an advance payment

    Faisal,

    I think your approach is the best possible, as there is no other method in GP to directly do this.  It sounds like your only concern is that the Return transaction is 'open' - that is actually not the case.  If you enter a return with a receipt of payment at the same time (which from your description sounds like you did), since there is no 'on account' amount, the return should automatically move to history.  I have a blog post illustrating this if you would like to see more about return transactions in payables: victoriayudin.com/.../payables-return-transactions-in-dynamics-gp.  The only thing I might change is to use a Misc Charge instead of an Invoice in your 3rd step, just to keep this separated somewhat from regular invoices.  But that is a very minor point and should not cause any issues either way.

    I would discourage voiding the original payment, as that may cause more explanation and workarounds in Bank Rec, as well as a possible audit issue where a valid, cashed check is showing as voided in your records.

    Mohammad's suggestion would also accomplish what you need.  In that case, instead of entering a return transaction in payables, you would enter a bank transaction with a type of receipt - same result at the end, but I would actually recommend using the payables return, as it keeps all the vendor related transactions together in the payables subledger.

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: How to return payment from vendor again an advance payment

    I guess you are trying to receive something like "Cash Receipt" from vendor, if that was the case I normally use return in PM Transaction Entry into offset account and then create a bank transaction to affect my checkbooks and close the offset account with the bank transaction.

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: How to return payment from vendor again an advance payment

    If i am following the trail correctly, you are basically reversing everything associated with the transaction (both the payment and invoice).   Your GL accounts appear to be back to where they would have been without these ever happening.   If that is the case, then there is an easier way to do this.  

    1) In Purchasing, go to Void HIstorical Transactions.   Void the payment.   This does several things.  First, voids the payment in the Bank Rec.  Second, sets the invoice back to an open status. Third, makes a gl entry of DR-Cash, CR-Payables.

    2) In Purchasing, go to Void Open Transactions.   Void the invoice.   This removes the invoice from open status and makes a gl entry of DR-Payables, CR-Purchases.

    Again, this is based on my read of what your desire is.

    Warren

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