To reverse a vendor’s refund check that was recorded on a bank deposit for undeposited funds

If you haven’t already read the Vendor Debits Overview, see Finding, removing and reversing vendor debits for more information.

Use this procedure only if your transactions are unchangeable. See What are changeable and unchangeable transactions? for more information.

The vendor debit you want to reverse should be displayed. If you need help doing this, see To find a vendor debit before it’s settled or To find a vendor debit after you’ve received a refund check for it.

  1. Reverse a vendor’s refund check as you normally do. If you need help, see To reverse a vendor’s refund check.

  2. You have two options:

If you expect a replacement check from the vendor
  1. After you receive the replacement check, click the Purchases Register button. Click the Returns & Debits tab.

  2. Highlight the vendor debit that the check is replacing.

  3. Click the Receive Refund button to display the Settle Returns & Debits window.

  4. Create a debit as you normally do, using the replacement check’s amount in the Amount Received field. Be sure to select the Group with Undeposited Funds option. If you need help doing this, see Creating vendor debits.

  5. Remove the reversal of the original debit and the replacement check from the Enter Bank Deposit window; click Prepare Bank Deposit in the Checkbook command center to open the Prepare Bank Deposit window.

  6. Select the reversal and the replacement check by clicking the Deposit column.

  7. Click Record. You’re done!

If you don’t expect a replacement check from the vendor
  1. Click Record Journal Entry in the General Ledger Command Center.

  2. Enter the checking account where the check was recorded in the Acct # column, then enter the debit amount in the Credit column.

  3. In the next line, enter your Undeposited Funds account in the Acct # column. The debit amount should appear in the Debit column. Click Record.

  4. Remove the reversal of the original debit and the journal entry you just created from the Enter Bank Deposit window; click Prepare Bank Deposit in the Checkbook command center to open the Prepare Bank Deposit window.

  5. Select both the reversal and the journal entry by clicking the Deposit column.

  6. Click Record. Keep in mind that an outstanding vendor debit exists again for this vendor.

To reverse a vendor’s refund check that was recorded on a bank deposit for undeposited funds