Resolution:
When a vendor sends a refund, there are different ways to record the refund to ensure the vendor and project information are updated correctly.
Option #1: If the 1099 amount paid for the year by the vendor is not changing and only cash is affected:
- Go to Manage > Client Receipts, and enter a Miscellaneous Receipt.
- Enter the account. Typically, the expense account used for the original invoice entry.
- Create the deposit.
Option #2: If the 1099 amount paid for the year by the vendor and the project/phase totals need to be updated:
- Go to Manage > Client Receipts, and enter a Miscellaneous Receipt.
- Enter the account. Typically, the expense account used for the original invoice entry.
- Create the deposit.
- Go to Manage > Vendor Invoices, and enter a zero dollar invoice to reduce the 1099 amount.
- Enter a negative distribution for the amount of the refund and use the account number used when entering the deposit item.
- If the project/phase costs need to be reduced, enter the project phase on the negative distribution.
- Click Customize and add the column for Non 1099.
- Enter a positive distribution and select Non 1099.
- Click the Pay button and pay as an EFT to clear the invoice from the outstanding list.
- Select the operating bank account and click OK.
Option #3: If the vendor totals are not being updated, but the project/phase totals need to reflect the refund:
- Go to Manage > Client Receipts, and enter a Miscellaneous Receipt.
- Enter the account - typically, the expense account used for the original invoice entry.
- Create the deposit.
- Go to Manage > In-house Expenses, and enter a negative in-house expense for the project/phase/activity.