This explains how to record a refund received from a supplier. This could be when you have overpaid a supplier for a invoice, or they send a refund after sending a credit note.
This article explains how to enter the refund and match it to the original payment or credit note.
How this works
- If you import bank transactions from a bank feed or from your bank statement, you can only match the refund to an existing credit note.
- If you have already received the credit note, then enter the refund and match it to the credit note.
- If the refund is to repay an overpayment saved as a payment on account, enter the refund and match to the payment on account.
- If you have received a refund for a cash purchase where you don't have an invoice or credit note, use the Refund for a purchase option. Read more about cash refunds.
- If you use the
Cash Basisscheme, the refund shows on your next VAT return.
Match a refund from a bank feed
If you use bank feeds, you can only match the refund in your bank feed to the credit note it's paying.
Enter the credit note first.
From your bank feed, find the refund and choose Match.
Select or search for the relevant credit note. Select the check box to match the credit note and created a refund.
If the refund is to refund a supplier payment,
Discard the transaction from your bank feed.
Enter the refund manually.
If you need help with bank feeds, read about how to process incoming bank transactions.
Enter the refund and match it to a payment or credit note
Follow these steps to refund a payment or credit note that you have already received.
- From Banking, open the correct bank account.
- Select New Entry, then Sale / Receipt.
- Select the Supplier Refund tab. Enter the supplier, bank account, payment method, date and amount of the refund. If required, you can also enter a reference.
- Select the check box next to the credit note or payment on account the supplier refund is for. You cannot refund part of a payment on account or credit note from here.
- Save the refund.
If you have only received part of the value of an invoice
Match or allocate any the payment on account or credit note to the correct invoice. This leave an outstanding value on the invoice.
Open the invoice and refund the remaining invoice value.
Refund a credit note directly
Use this method to refund the entire value of a single credit note.
You can’t refund part of a credit note. First allocate the credit note to the correct invoice, then refund the outstanding value.
If you need help allocating transactions, read about how to match payments on accounts or credit notes to invoices.
- Select Purchases, then Purchase Credit Notes.
- Select the correct credit note.
- Select Record Refund, then check or enter the amount, date, bank account and payment method of the refund. If required, you can also enter a reference.
- Select Refund.