If the vendor sends the refund via cash or check in the currency other than vendor’s currency, we need to record the deposit in vendor’s currency via journal entry
Journal Entry
- Go to Transactions > Financial > Make Journal Entries
- Select the Currency, Posting Period and enter Exchange Rate
- In the first line, if the vendor amount is deposited to a bank account select the bank account and enter the amount in the Debit column
- In the second line, select the Accounts Payable account and enter the amount in Credit column and click on save.
Associating Vendor Credit to the Journal Entry
- Go to Transactions > Purchases/Vendors > Pay Single Vendor
- In A/P Account field select the accounts payable account which should be same as the account selected in the journal entry
- In the payee field, select the vendor name. The Vendor Credit and Journal entry appears in the bottom of the page.
- Click on Save
