When your district receives a refund or credit from a vendor, record as either a receipt or a negative invoice.
Both options will create identical transactions, crediting the line items and showing as a deposit during bank reconciliation. The only difference is whether the transactions show up in an Invoices report or a Receipts report.
Deposit the refund
Refunds are mostly likely entered as a receipt/deposit. The receipt line items should typically use the original expense account(s) that are being refunded, although if the refund is from the prior school year, you must use a designated revenue account instead.
To create the receipt:
- Go to Financials Main > Accounts Receivable > Receipts
- Create Receipt
- Enter the required information
- Line Item(s) Enter the accounts to be credited
Create a negative invoice
If a vendor issues a credit towards future payments instead of an actual refund, a negative invoice/payment may be more appropriate than a receipt/deposit. Like above, you will typically use the original expense account from the payment that is being refunded.
To create the invoice:
- Go to Financials Main > Accounts Payable > Vendor Invoices > Create Invoice
- Enter all required fields. In the Line Items section, use the original expense account to indicate which fund should be credited when the payment is made. In the Amount field, enter a negative amount (Ex. -123.24)
- After the invoice has been created and has the status “Ready for Payment,” you can continue to make payments. The payment type should be EFT because you cannot issue a check for a negative amount.