Create a "Credit" voucher by entering the amount that will be deducted from the invoice for this item's return as a Negative dollar amount at the A/P Voucher entry screen.
Once the credit voucher has been saved, use the "Apply A/P Credit Vouchers" program to apply this credit voucher to the original invoice voucher.
If the invoice for the item has been paid:
Verify that an inventory adjustment was made for the item to show that it was returned. The inventory transaction will show that the item was returned.
Create a manual journal entry to post the refund check amount with a debit to the appropriate cash account and credit to the inventory account that is used for that item. The invoice number that the refund check applies to may be added at the Ref No field and a short description about the refund check may be added for future history. A Journal Entry Report of the manual journal entry may be printed and attached to the original invoice for future reference. The JE report will include the first 6 characters of the Ref No field, all characters of the Desc field, and both Notes fields from the manual journal entry.
