- In Cash Receipts, record the check as a payment so that it is posted to the General Ledger as well as entered into the bank account's register.
- In Accounts Payable, Records, Vendors, open the Vendor record.
- Create an invoice with today's date for the refund amount.
- Create a credit memo with today's date for the refund amount.
- Set both of these transactions to Do Not Post.
- Apply the credit memo to the invoice.
These steps allow the Vendor record to reflect the credit without creating a credit balance, while the Do Not Post status prevents duplicate information in General Ledger.
The Cash Receipts posting verify the check is properly recorded in General Ledger.