Receiving a refund from a vendor

When you return goods to a vendor or successfully dispute a charge on a bill, the vendor may issue you a refund. Recording this refund in Usystems reduces what you owe the vendor and keeps your accounts payable accurate. You can process a full refund (the entire bill amount) or a partial refund (money back for specific items only).

Before you start

• You must have permission to create and manage refunds.
• The bill or cash purchase you are refunding must already exist in the system.
• Decide whether you are refunding the entire purchase or only some items.
• Know which account will receive the refund money (usually a bank account or cash account where the vendor will send the money back to you).

Steps for a full vendor refund

1. Go to Bills or Cash Purchases. Open in Usystems

2. Find and click on the bill or purchase you want to refund.

3. On the bill detail page, look for the Refund or Create Refund button or option.

4. A refund form will appear. Confirm that the refund type is set to Full Refund.

5. In the Refund Account field, choose the account where you will receive the money (e.g., Bank Account - Primary or Cash - Main Office).

6. Optionally, enter a Reason for the refund (e.g., "Goods returned," "Defective items," "Billing error").

7. Review the refund amount (this should match the bill total).

8. Click Save or Submit to record the refund.

9. If required, click Approve or Complete to finalize the refund.

Steps for a partial vendor refund

1. Go to Bills or Cash Purchases. Open in Usystems

2. Find and open the bill or purchase.

3. Click the Refund button and choose Partial Refund.

4. A list of items on the bill will appear. For each item you are returning or disputing:

   • Check the box next to the item.
   • Enter the Quantity being refunded (can be less than the full quantity ordered).
   • The refund amount will calculate automatically.

5. In the Refund Account field, choose where you will receive the money.

6. Optionally, add a Reason.

7. Review the total refund amount at the bottom.

8. Click Save or Submit.

9. Approve the refund if required.

Accounting impact

When you record a vendor refund, Usystems reduces what you owe:

• Accounts Payable (vendor balance) is reduced by the refund amount, lowering your debt to the vendor.
• The refund account (usually Cash or Bank) is increased, showing money coming in from the vendor.
• Expense is reduced for the items refunded (lowering your costs).
• Inventory is reduced if you returned goods that leave your stock.
• Taxes paid on the original purchase may be reversed if the refund includes tax.

These changes are posted to your general ledger automatically.

Tips & common mistakes

• Record the refund promptly. Once you agree with the vendor to issue a refund, do not wait to record it. This keeps your payables balance accurate.
• Match the refund amount with the vendor's credit memo. If the vendor sends you a credit memo or refund notice, verify the amount matches what you record in Usystems.
• Use partial refunds for partial returns. If you return only some items from a purchase, a partial refund makes your records clear.
• Keep the refund reason. A note like "Return - defective" or "Billing dispute resolved" is helpful for your records and vendor communications.
• Do not reverse a bill entirely unless instructed. If a vendor issues a full refund, they will usually also cancel the bill. Ask your accountant how to handle this in your system.