Receiving money back from a vendor

When a vendor gives you money back—either as a cash refund or as a credit note to use on future purchases—you need to record it in Usystems. This keeps your cash flow accurate and updates what you owe the vendor.

Before you start

• You have access to Purchases or Payments in the menu.
• You have a vendor return already created in the system, or you have a bill adjustment.
• You know the refund amount and the method (cash, cheque, or credit note).
• You have a confirmation from the vendor (email, receipt, or credit note reference).

Steps

1. Go to Payments. Open in Usystems

2. Record the payment from vendor. Select the vendor from whom you are receiving the refund.

3. Enter the refund details:

   • Refund amount (in your local currency)
   • Payment method (cash, cheque, bank transfer, or credit note)
   • Payment date (the date you received or expect to receive the money)

4. Link the refund to the original return (if prompted): Select the return or bill that this refund is for.

5. Save the payment. Usystems records the refund and reduces your accounts payable balance with that vendor.

6. If receiving cash or cheque, deposit it to your bank account.

7. If receiving a credit note, use it on a future purchase from the same vendor.

Accounting impact

When you record a vendor refund:

• Accounts payable: Decreases (debited), reducing what you owe the vendor.
• Cash or bank account: Increases (credited) if you receive cash or cheque.
• Vendor credit/liability: Increases if you receive a credit note instead of cash (recorded as a liability until you use it).

Tips & common mistakes

• Match the refund to the return. Always link a refund to its corresponding return or bill so your accounts match.
• Keep the vendor's documentation. Save the cheque, receipt, email confirmation, or credit note reference for your records.
• Watch for currency differences. If the vendor is in a different country, confirm the exchange rate and record the refund in your local currency.
• Credit notes are not immediate cash. A credit note (voucher) can only be used on future purchases from that vendor. It does not put money in your bank account.
• Record the date accurately. Use the date you received the money, not the date you created the return.