Received check for over payment check; how to properly record journal entry/clear invoices

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Posted on by Community Member Microsoft Employee

Hi,

I recently cut a check to a vendor for $5K but the actual invoice was much smaller. The vendor applied the check to three separate invoices which were outstanding and then issued a refund since we had no other invoices outstanding. How should I go about recording this? And how do I get rid of the invoices that were paid off with this check? Thanks!

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Community Member Microsoft Employee on at

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RE: Received check for over payment check; how to properly record journal entry/clear invoices

thanks for the reassurances!
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Community Member Microsoft Employee on at

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RE: Received check for over payment check; how to properly record journal entry/clear invoices

If this is not a 1099 vendor then I would create a GL journal entry where you credit the expense account you used on the original voucher and debit cash in bank (assuming you deposited the refund check). This will not reduce the vendor purchase and payment history for the year of the invoice and check but as long as this vendor is not a 1099 vendor it really does not matter.
Community Member Microsoft Employee on at

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RE: Received check for over payment check; how to properly record journal entry/clear invoices

I accidentally entered the original invoice I was paying as the 5K number :/
John_Joyce 1,040 on at

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RE: Received check for over payment check; how to properly record journal entry/clear invoices

Questions:

Was it a hand-written check, and now you are entering the Manual Check data?

If not a hand-written check, was this check entered/printed as a Prepayment?

If not, I'm curious how you were able to over-pay the vendor, as checks being printed out of SL need to be applied to outstanding vouchers.

John