Associate Vendor Credit to a Refund in Foreign Currency

If the vendor in a foreign currency sent you a refund by cash or check in a currency other than the vendor's currency, you have to record the deposit in the vendor's currency via a journal entry.
 
1. Navigate to Transactions > Financial > Make Journal Entries.
2. Select the vendor's currency in the Currency field.
3. Enter the applicable Exchange Rate.
4. Select the Posting Period.
5. On the Lines subtab, enter the detail information for the journal lines:
  a. If the vendor refund was deposited to a bank account in your base currency, select the bank account in the Account field.  Otherwise, select Undeposited Fund in the Account field.
  b. Enter the amount received in the Debit column.
  c. Enter other mandatory information (Location, Department, Class).
  d. Click Add.
  e. On the second line, select Accounts Payable (make sure to select the same Accounts Payable used in the vendor credit) in the Account field.
  f. Enter the amount in the Credit column.
  g. Select the vendor in the Name column.  This is important so that you can apply the journal entry against the vendor credit later.
  h. Enter other mandatory information (Location, Department, Class).
  i. Click Add.
  j. Click Save.
 
Next, you must associate the vendor credit to the journal entry.
 
1. Navigate to Transactions > Purchases/Vendors > Pay Single Vendor.
2. In the A/P Account field, select the Accounts Payable used on the vendor credit and journal entry.
3. In the Payee field, select the vendor name.  The vendor credit and the journal entry will appear in the list at the bottom of the page.
4. In the Apply subtab, check Apply boxes next to the bill credit and the journal entry.
5. Click Save.
 
If the vendor refund was a deposited to a bank account that is in a currency other than the base currency, additional steps are required to transfer the amount from Undeposited Fund to the specific bank account.
 
1. Navigate to Transactions > Bank > Make Deposit.
2. In the Account field, select the bank account where the vendor refund was deposited.
3. Verify the Date.
4. Verify the Exchange Rate.
5. Verify the Posting Period.
6. In the Items tab > Payments subtab, check Deposit box next to the journal entry.
7. Click Save.