This post will described a way to handle a scenario where an invoice and payment were incorrectly posted for the wrong vendor. The vendor actually deposited the payment, but then sent a Refund Check back to you. How would you handle this scenario?1. At this point you have an Invoice posted for $100 (-$100 Vendor Ledger Entry)Note - Accounts Payables balance is typically Credit Balance
2. You also have a Payment posted for $100 ($100 Vendor Ledger Entry) that was sent to the Vendor and deposited.Vendor Balance is now $0
3. The Vendor now sends you a check back for $100 because you never owed them in the first place. Now you would go into a Payment Journal and create a new journal line, with the following..Document Type = RefundDocument No. = The Doc. #Vendor = Vendor No.Amount = -$100 (This is a negative amount)Bal. Account Type = Bank AccountBal. Account No. = The Bank you'd deposit the payment in.....POST this Payment Journal. This would be a Credit to the Vendor Payables account and Debit to the Bank Account, and thus we'd have a Credit Balance on the Vendor Payables Account.
4. You'd now want to post what NAV terms as a Purchase Credit Memo for $100. In accounting terms, this is considered a Debit Memo. We'd be debiting the Vendor Balance, basically for the offset to the incorrect invoice that was posted. At this point, we'd have a $0 balance again for the Vendor.
5. At this point, if you desire, you could unapply the Payment from the Invoice within the Vendor Ledger Entries. Then apply the Payment to the Refund, and apply the Credit Memo to the Invoice.Thank you,Bryan TschosikSupport Esc. EngineerMicrosoft Dynamics NAV Support
Hi Bryan - Great description. Do you know if there is a way to record this payment on two rows instead of using balancing accounts? I would like to combine a refund with a few other rows and the other rows will require that i have a single bank entry but I get an error when i use 2 rows even making sure I have the same document number.