How do I post a check from AP vendor for overpayment

[Sandy]

We have received a check from an AP vendor for a credit they have issued due to over billing us. How should I record this check? I should add that we don't use the receivables part of the program.

[Zorak]

The easiest way would probably be to just enter a transaction in Fund Accounting, debiting the bank where you will deposit the check and crediting the expense account that was overexpensed.

If you like, you could create a manual check in Accounts Payable for a negative amount for that vendor. It accomplishes the same thing, but seems like a couple of extra steps to me.

[Sandy]

Thank you. That makes it so much easier than I thought it would be.

[Eden Whitehead]

We have received a check from an AP vendor for a credit they have issued due to over billing us. How should I record this check? I should add that we don't use the receivables part of the program.

Similar situation except the overbilling occurred 3 years ago! I don't really want to credit the expense account for the current year because it will skew the actual expenses for this year. Is it acceptable in this case to credit the equity account directly?

Eden

[Jeff]

You could credit a miscellaneous income account for the current year. Generally you would only credit the equity account when a mistake was made in the prior year and you don't want to effect this years income or expense amounts. In this case it was not really a mistake in a prior year, so I would lean towards treating it as income. But you could make a case either way.

[Eden Whitehead]

Thanks, Jeff! I've done as you suggested, crediting miscellaneous income.

Eden