Process a refund given by supplier(vendor)?

[Justme99]

I am running Sage 50 2013 but am having a hard time posting an entry the proper way. The story is a little convoluted but I'll try my best to explain clearly.

A supplier of mine split his company into 2 separate entities. For clarity sake I will call the original company COMPANY A and the new separate entity COMPANY B.

2 invoices received for goods purchased from COMPANY B(before companies split)
COMPANY B was sent payment instead of A, but COMPANY A was never told by COMPANY B
COMPANY A demanded payment for 2 outstanding invoices
COMPANY A was sent payment for the invoices
In the meantime more goods bought from COMPANY A
After some digging COMPANY A found and got original payment from COMPANY B but that meant we had a credit with COMPANY A
Company A used the credit to pay one o/s invoice we had with COMPANY A
We received a refund cheque for the remainder(the original overpayment minus the outstanding invoice from COMPANY A).

How to enter this properly so I can make sure cheque gets into chqs & cash acct?

Thanks very much!

[brucedenney]

A supplier refund should do the job.

you might also need to do a dummy credit and invoice to move some of the balance form A to B or vice versa

[Justme99]

Thank you so much!!