Dynamics GP – Recording Vendor Refunds

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Have you ever wanted to record a refund from a vendor under the actual Vendor in Dynamics GP? Well you can, and here’s how. Of course, you can record it under the banking module if you are only concerned about updating the checkbook. But, here is how we can enter it in Dynamics GP so it updates the Vendor and the Checkbook at the same time.

In this scenario, I have received a refund of $750.00 from my Federal Express vendor. They did not send a credit, but a check payable to my company.

In the Payables module I am going to enter a “Return”.

Purchasing>Transactions>Transaction Entry

  • Select the Document Type of “Return”
  • Select your Vendor
  • Enter the Date
  • Enter a document number. You may elect to use the Check Number of the refund.
  • Enter the value of the refund on the “Returns” field.

Dynamics GP Payables Transaction Entry screen

  • Enter the value of the refund on the “Cash” field.
  • Accept the defaults, but make sure it’s the checkbook you want the funds to go to.

Dynamics GP Payables Transaction Inquiry screen with Cash Entry

  • Click on Distributions

Dynamics GP Payables Transaction Entry Distribution screen

  • Make sure you credit the appropriate account and the Debit will be to Cash.
  • Save to a batch or Post the transaction immediately.

You will notice when you do an Inquiry on your Vendor, there is a “Return” entry that has gone to History.

Purchasing>Inquiry>Transaction by Vendor

Dynamics GP Payables Transaction Inquiry screen

Now we must update the checkbook for reconciliation purposes.

Financial>Transactions>Bank Deposits

Dynamics GP Bank Deposit Entry screen

  • Select your Checkbook
  • Enter the correct date
  • Mark the box against the item the represents the refund
  • Post the transaction

You will now see this entry in your Checkbook as a deposit.


Dynamics GP Checkbook Register Inquiry screen

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About the Author

Vickie Bell

ACE Microtechnology, Inc. is a professional services firm committed to delivering Dynamics 365 (CRM) business solutions to small and medium sized organizations. Our focus is on delivering products and services that improve our clients’ business operations. ACE has developed specialties in serving the lite manufacturing, distribution and the hospitality industry.

Rather than just building technology or implementing software, we deliver real business value through industry knowledge and understanding each client’s business. We make it our business to know your business.

For more information or assistance with Dynamics 365 (CRM) contact ACE!