Debit and Credit Adjustments: Refunds

A refund serves as a payment for a debit adjustment. When you receive a refund from a vendor and enter it into the system, you should create a debit adjustment in the same amount for the same vendor and pay for this adjustment by using the refund. Once the refund is applied against the debit adjustment and released, both documents become closed.

Releasing a refund creates the following transaction.

Account	Debit	Credit
Cash account	Amount	0.00
Accounts payable account	0.00	Amount

If a refund is paid in a foreign currency, the realized gain or loss account may also be updated by the amount resulting from the differences in exchange rates for the original debit adjustment and the refund.

Back to TopCorrection of a Refund

You can correct a released refund by voiding it and recording the correct refund. For step-by-step instructions, see To Void a Refund.

You void the refund on the Checks and Payments (AP302000) form by selecting the needed document of the Refund type and then clicking Void on the form toolbar. The system creates a document of the Voided Refund type with the same reference number as the refund has, and reverses the original refund.

Before you release the voided refund, you can change the date of the voided refund in the Application Date box in the Summary area of the form. The date specified in this box should be the date when the voided refund is released (Payment Date) and when the related batch was created (Transaction Date). You can also enter a description of the voided refund in the Description box in the Summary area of the Checks and Payments form.

On release of the voided refund, the system changes the status of the refund to Voided and the status of the voided refund to Closed. On the Application History tab, you can see the original document for which the refund has been applied with a negative amount. The following reversing transaction for the voided refund is recorded to the general ledger when the voided refund is released.

Account	Debit	Credit
Cash account	0.00	Amount
Accounts Payable account	Amount	0.00

If the original document for which the refund has been applied has the Closed status, when the refund is voided, the system changes the document’s status to Open. You can again apply documents to the original document.

Debit and Credit Adjustments: Refunds

[anchor|#section_v33_njv_vxb][anchor|#p_w33_njv_vxb]
A refund serves as a payment for a debit adjustment. When you receive a refund from a vendor and enter it into the system, you should create a debit adjustment in the same amount for the same vendor and pay for this adjustment by using the refund. Once the refund is applied against the debit adjustment and released, both documents become closed. [anchor|#p_x33_njv_vxb]{br}

Releasing a refund creates the following transaction.[anchor|#table_b5d_jcm_3k]
{| class="checklist" | width="100%" 
|- 
!width="39%" !  Account
!width="30%" ! Debit
!width="30%" ! Credit
|- 
|  Cash account
| Amount
| 0.00
|- 
|  Accounts payable account
| 0.00
|  Amount
|}[anchor|#p_y33_njv_vxb]
If a refund is paid in a foreign currency, the realized gain or loss account may also be updated by the amount resulting from the differences in exchange rates for the original debit adjustment and the refund. [anchor|#section_z33_njv_vxb]
==Correction of a Refund==[anchor|#p_aj3_njv_vxb]
You can correct a released refund by voiding it and recording the correct refund. For step-by-step instructions, see [HelpRoot_AccountsPayable\AP__HOW_To_Void_Vendor_Refund|To Void a Refund].[anchor|#p_bj3_njv_vxb]{br}

You void the refund on the [HelpRoot_FormReference\AP_30_20_00|Checks and Payments] ([~/?ScreenId=AP302000|AP302000]) form by selecting the needed document of the ''Refund'' type and then clicking '''Void''' on the form toolbar. The system creates a document of the ''Voided Refund'' type with the same reference number as the refund has, and reverses the original refund.[anchor|#p_cj3_njv_vxb]{br}

Before you release the voided refund, you can change the date of the voided refund in the '''Application Date''' box in the Summary area of the form. The date specified in this box should be the date when the voided refund is released ('''Payment Date''') and when the related batch was created ('''Transaction Date'''). You can also enter a description of the voided refund in the '''Description''' box in the Summary area of the [HelpRoot_FormReference\AP_30_20_00|Checks and Payments] form.[anchor|#p_dj3_njv_vxb]{br}

On release of the voided refund, the system changes the status of the refund to ''Voided'' and the status of the voided refund to ''Closed''. On the '''Application History''' tab, you can see the original document for which the refund has been applied with a negative amount. The following reversing transaction for the voided refund is recorded to the general ledger when the voided refund is released.[anchor|#_24257987-fd8f-4b02-9cde-c2fdad39bad8]
{| class="checklist" | width="100%" 
|- 
!width="28%" !  Account
!width="42%" ! Debit
!width="28%" ! Credit
|- 
| Cash account
| 0.00
| Amount
|- 
|  Accounts Payable account
| Amount
| 0.00
|}[anchor|#p_ej3_njv_vxb]
If the original document for which the refund has been applied has the ''Closed'' status, when the refund is voided, the system changes the document’s status to ''Open''. You can again apply documents to the original document.