## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/us/books/kb/llms.txt

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# How do I record a refund of the excess payment I made to a vendor?

Refund of the excess payment received from a vendor in your business can be recorded from the Vendors or Banking module.

**1\. To record it from the Vendors module:**

*   Go to the **Purchases** module on the left sidebar and click **Vendors**.
    
*   Select the vendor against whom you wish to record the refund.
    
*   Click the **Unused Credits** in the **Overview** tab.
    
    ![Vendor Unused Credits](/books/kb/images/expenses/unused-credits.png)
*   In the pop-up that opens, click the **Excess Payment** to view the payment made.
    
    ![Vendor Credit Details](/books/kb/images/expenses/vendor-refund-option.png)
*   Click the **More** icon and select **Refund.**
    
    ![Vendor Payment Refund](/books/kb/images/expenses/vendor-excesspayment-refund.png)
*   Enter the required details in the refund page, and click **Save** to record the refund.
    

**2\. To record it from the Banking module:**

*   Go to the **Banking** module on the left sidebar and select the bank.
    
*   Click **Add Transaction** in the top right side and select **Vendor Payment Refund** under **Money In.**
    
    ![Vendor Payment Refund](/books/kb/images/expenses/banking-vendor-refund.png)
*   Select the vendor and add other necessary details.
    
*   Click **Save** to record the refund.
    

**Note:** If the vendor refunds the amount directly to your bank account, you can manually categorize the transaction, with **Vendor Payment Refund** as the **Category** to associate it with the vendor. Learn more on [categorizing transactions manually.](https://www.zoho.com/books/help/banking/matching-transactions.html#manual-transactions-cat)