Entering Payment with Cash Back

The following steps allow the full check amount to show at the Bank Deposit screen and keeps the petty cash or cash drawer account correct.

1. Set up a new Pay Method at Setup / AR / Pay Methods called Cash Back. Fill in the rest of the grid by setting the posting account to the Petty Cash account for each location or whatever general ledger account represents the cash drawer.
2. At AR / Payments, add a new payment for the full amount of the check in the Payment Amount and allow the difference to go to Unapplied Cash.
3. Take a second payment at AR / Payments changing the Payment Method to Cash Back. In the Payment Amount field enter a negative amount for the amount the customer took back in cash. Untag all the invoices in the grid and check Use U/A Cash.