Partial Refund from a Vendor

[FirstMOBC]

We had an insurance company to cancelled our insurance policy. The company refund a portion of the premium back to us. Since it was thru A/P can I credit the partial payment back thru A/P or will I need to make a J/E?

[NeilZ]

We had an insurance company to cancelled our insurance policy. The company refund a portion of the premium back to us. Since it was thru A/P can I credit the partial payment back thru A/P or will I need to make a J/E?

You can do that through AP in order to reflect the return of the funds and reduction in the insurance expenses and this will adjust the vendor's payment record. You would use the manual checks, and just change the checking account credit to a debit ,and the expense account debit to a credit.

I would use something like REFUND or REF-11/10/17 as the check number. Once posted to FA, it will show up under the Deposits and other Additions area of the Reconciliation window.