Example: Accounting Entries for Credit Reimbursements

For this example, use this information:

1. You issue a credit in the amount of 50 to a customer for damaged goods, and then post the transaction. The system:

   • Debits the sales (revenue) account.

   • Credits the A/R trade account.

2. You generate a credit for reimbursement. The system:

   • Debits the A/R trade account for the credit amount and assigns a document type of NO.

   • Credits the suspense account.

3. The system also:

   • Creates a voucher (NO) in the JD Edwards EnterpriseOne Accounts Payable system (credit to the A/P trade account) to reimburse the customer for the credit amount. Then you post the voucher.

   • Debits the suspense account of the voucher to zero out the credit amount.

4. You create a payment (PK or PN) in the JD Edwards EnterpriseOne Accounts Payable system to reimburse the customer for the credit amount and then post the payment. The system:

   • Debits the A/P trade account.

   • Credits the cash account.

This graphic shows the accounting entries associated with each of the preceding steps: