AP Refund - How to Record Dishonoured Payment / Bounced Cheque Issued by You to a Vendor

Example Scenario:

You have issued a cheque to a vendor which subsequently bounced.

Step 1 - Edit the AP Payment

Firstly, please note down the original payment amount.

Unapply all the items in the 'Pay Invoice Items' section.

Please note that, when you unapply the items, the payment amount will decrease to zero in the payment amount box.

Please re-enter the original payment amount into the payment Amount box.

Save the AP Payment. 

Step 2 - Create an AP Refund

Select the Creditor

You will be required to enter a Main Description for your refund.

Select the Acc to be Debited.

For Payment Method, you may select the dishonoured payment's payment method (e.g. for bounced cheque, select 'Cheque').

For Reference No / Cheque No, you may entered the dishonoured payment's reference number (e.g. for bounced cheque, enter the bounced cheque's number).

In the items knock-off section, tick the checkbox of the Payment that you wish to refund.

Save the AP Refund.