We are running GL, AP and BR.

We issued an EFT payment to a Vendor and then in error, the payment was paid a second time.
The payments were posted and show up in Bank Rec, as they should.
The Vendor now shows a Cr balance.

The Vendor sent us back a cheque for the over-payment.
How should we enter this transaction, so that the Bank will show the deposit of the cheque and also that the Vendor transactions should net to $0.00?

Hello Sam,

If you are using BankRec 9.3A and Payables 9.3C and the Payment was from a Cash Invoice, you may be able to Reverse the Payment in BankRec and have if flow through Payables.

In the Payables Company Profile, the System Options tab must have the ‘Reverse cash invoice with check?’ option set to Prompt or Always.

On the BankRec Bank, on the Interface tab, the setting for: Update Payables Check Reconciliation, must be set to Completed.

In BankRec Bank Reconciliation, when the Payment is Reversed, there is an option to “Reverse Cash Invoice’.

I considered reversing the transaction.

But we do not want to do this, because the 2nd payment really did flow out of the bank.
Our Bank Statement shows the payment happening twice.
We want to leave the two payments as is, since they really did happen.

Rather, we want to show a deposit from the Vendor, indicating that they made a payment to us.
And of course, to get their account in balance, not displaying a credit balance.

Hi Samuel:

You may want to do a Miscellaneous Cash receipt to a transit account and a Debit Note in Payables posted to the same account.

I'd also tackle this the way Patricia described. Just make sure to link the Debit note (or use an Adjustment) to the open item in your vendor account.

Patricia (& Jesse) – I like your suggestion.
I went through this in Sample Company. It appears to give me the result I am looking for.
As well, I used the same GL Account for both the Debit Note and the Bank Receipt, so that this will net to $0.00 and the only accounts that are hit are the AP Control and the Bank.
Thank you for sharing your thoughts!

When you configure and setup Adagio Bank Rec, you create a BankRec Suspense account. Everyone knows this. That is best practices which we have been training people to do for years.

So correcting this processing error is a slam dunk.

Post the deposit as a misc deposit in AR with the CR to Bank Rec Suspense. Done.
Adjust the vendor overpayment in AP to Bank Rec Suspense. Done. You can reference or document the adjustment in AR and AP, but get it done.

It's how the software was designed to work.

Merry Christmas.
Brian