With a Credit Note from a supplier
Before a payment has been received for a refund you may be in receipt of a credit note from the supplier. This is processed by following the steps below:
Add the credit note onto the system as a Firm Credit. This will be added to the purchase ledger in the same way you would add a Firm Invoice and it will create a negative entry in the pay suppliers function that will appear in red
When payment is received, visit the Pay Suppliers function. Select the Firm Prepayments tick box and enter in the relevant details surrounding the refund - the amount will need to be entered as a negative amount
Click Post. An entry will be created which can then be used to allocate against the original firm credit posted. These can be allocated against each other under the tick box for Firm Payments. You will need to enter the amount as £0.00
Once confirmed and the entries are ticked off it will just need to be posted
When allocated together and posted, the Firm Credit will be marked as paid and entry will be made on your bank reconciliation for monies received in for the credit note which can then be reconciled off when you next do your reconciliation
With no posting of a Credit Note
Sometimes you may get payment from a supplier for a refund with no credit note received from them. You can still post this onto the system and post a refund in for a Firm invoice without posting a credit note, by following the steps below:
Go into the Pay Supplier function and select the Firm Refund tick box and enter in the information needed for the payment received
Click the Post button and you will be notified the payment has been posted. This has now posted the refund onto the selected nominal code and an entry has been made on the bank reconciliation for the monies received