Best Of

Create a Bill Credit using the exact same info (eg Supplier, Account & Tax Code) as the original Cheque - The purpose of this is to reverse the expense & the associated GST component.

Then, enter a Make Deposit - dated as per the refund received - with the same Supplier, posting to your Accounts Payable account - This will then show in Pay Bills for you to allocate the Bill Credit against.

NOTE: Due to a long-term glitch, the Payee name drops out on stand-alone Deposits (meaning this Deposit won't show in the Supplier's transactions) To fix this, locate the transaction in the bank register, add back the Supplier name again there & save (Record) 😊

As an FYI … I'm not a fan of using journals for day-to-day entries as they don't provide enough clarity as to what's occurred, are not understood by everyone & can also report incorrectly in the Tax Detail reports. Journals are best used for EOFY depreciation & income distribution. The majority of scenarios can be better catered for via relevant transactions.