[GNC] Business: return of goods to vendor with refund to credit card

[Eric Chapman]

Thanks, Adrian.

You are a good and thorough teacher and a great asset to this list.

Eric

On 12/7/23 14:59, Adrien Monteleone wrote:
> I can't speak to your chosen solution, but to do this with a Credit Note:
>
> 1. Raise the Credit Note, assigning the line items to their proper 
> Expense accounts. This will result in Credit entries (right column) in 
> those affected Expense accounts, where normally Expenses are 
> Debits(left column)
>
> 2. Post it to A/P. This will result in a Debit entry (left column) in 
> the A/P account, where normally, you see Credit entries (right column).
>
> e.g., a typical posted Credit Note from a Vendor will result in:
>
> Dr. Liabilities:Accounts Payable
>   Cr. Expenses:stuff
>
> 3. 'Pay' the Credit Note with your Credit Card account. This is the 
> transaction which is the actual refund to your card. If you have 
> already entered this refund manually, simply right-click it and 
> 'Assign as Payment' searching for the Vendor and selecting the Credit 
> Note to clear it. This will result in a Credit entry (right column) in 
> the A/P account, with a Debit entry (left column) in the Credit Card 
> account.
>
> e.g., a typical refund on a Credit Card against a Vendor Credit Note 
> will result in:
>
> Dr. Liabilities:Credit Card
>   Cr. Liabilities:Accounts Payable
>
> ----
> I personally only use Debit/Credit labels because I find them 
> consistent and easier to understand than the various 'slang' 
> terminology of the informal labels. (which don't always make sense in 
> every situation) Regardless of the terms used for the column headings, 
> the left/right nature does not change. (hence why I specified which 
> they should be)
>
> Regards,
> Adrien
>
> On 12/7/23 1:21 PM, Eric Chapman wrote:
>> Story: I bought some items locally in September. I returned a portion 
>> of them in November and the vendor was willing to issue a refund for 
>> the items I decided I did not need. The refund was made to my credit 
>> card.
>>
>> I tried to use a "Credit Note", but could not figure out how to make 
>> it work. Is is just the same as an invoice, except that it 
>> automatically puts the amount in the "Refund" field? What other 
>> differences are there?
>>
>> When I checked my vendor report for that vendor, I had mismatches and 
>> amounts in the aging columns.
>>
>> Therefore I just deleted the "Credit Note" and input the 
>> return/refund as if it were a bill (invoice from vendor). I put in 
>> negative amounts. Worked fine. I clicked "Pay" and "paid" the 
>> negative amount to the credit card. Everything looks correct to me.
>>
>> Is there a reason why this methodology is not good? Any other advice?