1. Record the Credit Memo issued from the Vendor as a negative amount.
2. Because the vendor has actually put the money back on your credit card, you need to cancel out the issued credit memo by entering a Bill-New with a positive amount.
In Bill-Apply, there will also be 2 steps to handle the 2 entries made above.
1. Apply the Vendor’s Credit Memo (from step A above), to the Order (not individual line items). Click on “Add Ledger” and enter the same general ledger you originally used when you received the vendor’s bill (for example, 135 Drop Ship Merchandise). Enter the amount as negative.
2. Apply the “New” entry from Step B above. Apply as a “Non Order”. Use the general ledger for your Credit Card Asset Account. Enter as a positive amount.
In Bill-Pay, enter a handwritten check using a fake check number, pay the positive and negative invoice from the Vendor.
NOTES:
- When you get the credit card statement, the balance in your credit card general ledger should equal your new statement balance if you have everything recorded properly. Any miscellaneous charges (not made for orders) should be recorded as general ledger transactions when you are reconciling your statement to the proper general ledger account. This is also how you would record any interest expense.
- When you are done reconciling, the credit card account should have a credit balance equal to your statement balance.
- When you make your payment (after you reconcile), do a bill new to your credit card as the amount of your payment and in bill apply, apply it to the credit card general ledger account.