To post a check for a vendor return follow the easy steps below. You will first need to post the check as a Miscellaneous Cash Receipt, then create a positive A/P invoice for the same amount, using the same General Ledger account, and finally, cut a zero dollar check to remove the invoices from the Accounts Payable file.
1)Post the check as a Miscellaneous Cash Receipt.
1.Select Accounting > Accounts Receivable > Cash Receipts Posting. In the bottom left corner of this window, click on the Miscellaneous tab and the system will display the Miscellaneous Cash Receipt Posting screen.
2.Enter the payment information in the Check window upper right corner of the screen:
-Enter the G/L Bank Code for the account that will accept the payment, or use the 
to search for the correct code.
-Enter the Check Number for the check.
-Enter the amount of payment received in the Amount Received field and press Tab.
3.Now you need to enter the General Ledger information for this cash receipt. Start by entering a description for the payment in the Description field (such as "Vendor Return"), or use the to search for the appropriate miscellaneous description. Then press Tab.
4.Enter the General Ledger Bank Code for the account that the payment will be posted to in the G/L Account field, or use the to search for the correct code. The name of this account will appear in the Description field to the right.
5.Enter the amount of the payment that you want to post to this account in the Amount field and press Tab. You will see the Balance Left field and Total G/L Distribution field adjust to reflect this posting. The Balance Left field should display zero and the Total G/L Distribution field should be equal to the Amount Received field.
6.Click the Save button to save the Cash Receipt to your Accounts Receivable. You can then enter another Cash Receipt to the batch, or simply leave this window open while you continue with the next two steps. You can then come back to it to continue entering Cash Receipts after you are done.
2)Create a positive A/P invoice for the same amount, using the same General Ledger account.
1. Select Accounting > Accounts Payable > Invoice Entry.
2. Enter the Vendor Number for the vendor who sent the payment in the Pay To Vendor field and press Tab.
3. Enter a number for the invoice in the Invoice Number field and press Tab.
4. Enter the Invoice Date.
5. Now enter the same amount as the payment in the Gross Amount field, as a positive number. This positive invoice will be used to cancel out the negative invoice that exists for the vendor. The negative invoice should be linked to the negative Purchase Order that was created to return the merchandise to the vendor.
6. Enter a Due Date for the invoice.
7. In the G/L Distribution section, select the same General Ledger account as the negative invoice. The two invoices should match exactly, except for the fact that one will have a positive amount and one will have a negative amount.
8. Finally, click the Save button in the bottom toolbar.
3)Cut a zero-dollar check to remove the two invoices from the Accounts Payable file.
1. Select Accounting > Accounts Payable > Check Print.
2. Enter the reference code for the vendor in the Vendor field and press Tab. You can also use the to search for the correct vendor.
3. Both invoices should appear in the invoice window. Check off both invoices. This should make the Check Amount equal to zero.
4. Now, click the Individual Check button in the bottom toolbar, then click the Hand Check button. Do this so that the system won't actually print a zero-dollar check, it will just clear the invoices. You will need to enter a Check Number before you can save. To prevent conflicting check numbers, you can use "R" and then the original invoice number to signal that this check is an adjustment for a vendor refund.
5. Click the Save & Print button in the bottom toolbar. You can choose to print the payment voucher, or click View to view it on screen. A window will pop-up asking if the payment voucher printed correctly. Click the Yes button in this window.