Vendor Credits Paid Back to Credit Card

This FAQ will go over how to record a vendor refund that is credited back to a credit card account.

• To record this in Paradigm, go to Accounts Payable > Purchase Invoices. Then create a new invoice and set the Voucher Type to Debit Memo.
• List the credit items or expenses on the Debit Memo. When you Post the Debit Memo, it should have a negative total, indicating a credit to the Vendor’s A/P account.

• To close or pay out the Debit Memo, click the ‘Make Payment’ button on the Debit Memo.

• Next, select “Credit Card” from the payment method, then the credit card account from the Bank Account dropdown, and then enter the payment total as a negative amount.
• When the payable is posted, it will close the Debit Memo and record a “return” on the selected credit card account.