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 the Accounts Payable account and a credit to Cash.
2. Connect the Journal Entry to the Vendor record putting the Vendor Name in the Name column across the Accounts Payable line.
3. To view, go to Vendor record > click Make Payment > the Journal Entry should be visible.