A vendor refund is money that is returned from a vendor for an overpayment or from a return of goods. This best practice includes steps on how to add this money back on the property's books.
- Navigate to Accounting > Banking.
- Click the name of the bank account you'd like to return money to.
- Click Record deposit.
- In the pop-up window, click the link to Add other deposit items.
- Add the details of the refund. Choose the same account type that was used in the original payment. For example, if you receive a refund from the electric company, you'll probably use Utility Expense as the account.
- Complete the deposit as usual. see "Bank deposits"
On your income statement, this transaction will show as a negative expense.