There are times when we pay the Vendor more than the amount that was billed for our purchases. Each time, we have the option to either claim it as a credit to our accounts or simply received the cash refund. Since we received money as a refund from the Overpayment we made, we need to record it correctly in our accounting books.

1. The Journal entry is a debit to theAccounts Payableaccount and a credit toCash.

2. Connect the Journal Entry to the Vendor record putting theVendor Namein theNamecolumn across theAccounts Payableline.

3. To view, go toVendorrecord > clickMake Payment> the Journal Entry should be visible.