Overview

When a vendor issues a refund, record it in Accounting Seed using a negative Cash Disbursement. This article covers two scenarios: applying the refund against a Credit Memo, or reversing a payment to restore your Payable balance. In both cases, the negative Cash Disbursement will appear as a deposit on your Bank Reconciliation.

In this article:

• Before You Begin: One-Time Prerequisites
• Step 1: Create the Negative Cash Disbursement
• Step 2: Apply the Negative Cash Disbursement

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Before You Begin: One-Time Prerequisites

A Salesforce Administrator must complete the following prerequisites once per org. These steps do not need to be repeated for any future vendor refunds.

Prerequisite 1: Deactivate the Cash Disbursement Positive Validation Rule

1. Open any Cash Disbursement record.
2. Click the Setup (gear) icon > Edit Object.
3. From the left panel, select Validation Rules.
4. Click Cash_Disbursement_must_be_positive.
5. Click Edit, then uncheck Active.
6. Click Save.

Prerequisite 2: Add the New Button to the Invoices Applied To Related List

1. Navigate to Setup > Object Manager > Cash Disbursement.
2. Click Page Layouts, then select the Cash Disbursement Layout.
3. Scroll to the Invoices Applied To related list and click the related list settings wrench icon.
4. Click Buttons, then select the New checkbox.
5. Click OK, then Save.

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Step 1: Create the Negative Cash Disbursement

These steps are the same regardless of which option you pick.

1. From Accounting Home > Create Entries > Expenses menu > click Cash Disbursements and open the original Cash Disbursement.
2. Click Clone.
3. Add a minus sign before the Amount to make it negative.
4. Update the Disbursement Date and Accounting Period, if necessary, to a currently open period.
5. Click Save, then Post.

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Step 2: Apply the Negative Cash Disbursement

Follow the option that matches your scenario.

If…	Use…
The vendor is refunding you for an overpayment or returned goods (they notified you of a credit and are sending payment)	Option A: Apply to a Credit Memo
A payment was voided, rejected, or sent in error and you need to restore the original Payable balance so it can be paid	Option B: Apply to the Original Payable

Option A: Apply to a Credit Memo

Use this option when the vendor refunded you for an overpayment or returned goods.

a. Create a Credit Memo:

1. Find the original Payable record and click the Clone w/Lines button.
2. Select the Issue Date for the credit memo.
3. Select the Clone as Credit Memo checkbox.
4. Click Clone Payable, then Save the Credit Memo, then Post.

b. Apply the Negative Cash Disbursement to the Credit Memo:

1. On the negative Cash Disbursement, scroll to the Invoices Applied To related list and click New.
2. Search for and select the Credit Memo.
3. In the Applied Amount field, enter the same negative amount as the Cash Disbursement.
4. Click Save.

The Credit Memo will now show as satisfied and the refund is fully recorded.

Option B: Apply to the Original Payable

Use this option when a payment was voided, rejected, or sent in error and the original Payable balance needs to be restored.

1. On the negative Cash Disbursement, scroll to the Invoices Applied To related list and click New.
2. Search for and select the original Payable (not a Credit Memo).
3. In the Applied Amount field, enter the same negative amount as the Cash Disbursement.
4. Click Save.

The Payable balance is now restored and is available for a future Cash Disbursement.

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