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Entering a rebate from a vendor that posts to a cash account without affecting the vendor's balance

When a vendor issues a rebate check, it needs to be shown on the bank account without affecting the Vendor's account balance.  Affecting their balance by issuing a credit will create a credit that can be used on future bills incorrectly.  The easiest method is done via a journal entry.

How to fix it

These instructions will use an income account called reimbursed expenses, however you may elect to use another income account.

  1. Go to Company > Make General Journal Entries.
  2. Enter date of deposit.
  3. On the first line:
    1. enter the desired cash account.
    2. in the debit column, enter the rebate amount.
    3. enter a memo (if desired).
    4. in the Name column, enter the Vendor's name.
  4. On the second line:
    1. enter the reimbursed expenses income account.
    2. in the credit column, enter the rebate amount.
    3. enter a memo (if desired).
    4. in the name column, enter the Vendor's name .
  5. Click the Save & Close button.

This journal entry will appear under the vendor's account in the Vendor Center; it will increase the bank balance by the amount of the refund as well as crediting (increasing) the balance on the income account to offset the post to the bank account.

KB ID# SLN43270
2/9/2016 2:30:49 PM
PPRDQSSWS403 9132 Pro 2016 e8ca06