How should I record a cheque received from a supplier for an adjustment to an bill that we have already paid.

Hi bcschoolsports, you can create a Supplier credit to offset the original expense, then link it to a Bank deposit via Accounts Payable (A/P) to record a cheque refund from your supplier for an already-paid bill adjustment.

Here's how:

1. Go to the +Create button > Bank deposit.
2. Fill in the required fields, such as Bank Account and Supplier name, then select Accounts Payable (A/P) from the ACCOUNT field in the Add funds to this deposit dropdown.
   
   
3. Enter the refund amount. You can also include a description like "refund adjustment bill #123" and click Save and close from the Save and new dropdown.

After that, create a supplier credit by going to the +Create button > Supplier credit. Select a Supplier, enter the refund amount, and use the same expense account as the original bill. Then, click Save and close.

Lastly, link the Bank deposit and Supplier credit so they don't show as open balances. Go to +Create> Pay bills. Filter to show all dates/open items, check the box for the deposit (it appears as an open bill), enter the full credit in the CREDIT APPLIED field, and once done, click Save.

This process maintains your original bill, accurately reduces expenses, and clears all balances effectively.

If you have other concerns, feel free to add a reply below.