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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.

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