Payment refund from a supplier.

brianbrian Member Posts: 53

In March 2016 there was a discussion on how to handle a repayment from a supplier.

In my case, the supplier issued me a credit note and as I no longer deal with them they cleared the credit from their books with a DC payment. I have them in credit in my Accounting - Small Business system as I processed their credit note but now I have received the payment I don't know how to clear the credit note.

I understand the credit note is an asset and therefore a debit and the cash coming in is a credit so they should balance,but how can I get the transaction done?

Can you tell me how this is done please?

Comments

  • ZappyZappy Accredited Partner Posts: 4,459 ✭✭✭

    You can put a second negative line on the adjustment note and allocate it to the bank. Reckon likes to say you don't need accounting knowledge to use the program but it sure helps. Call me if you get stuck Kevin 0407744914

  • 13120291312029 Member Posts: 16

    Hi Kevin,


    I have come across the same issue. I do not know as how to settle the refund received from supplier.

    I have passed a credit note under SUPPLER, and the item is zero now. Under supplier, the open credit note is still there. and i have received the full refund as well.


    Pls explain as how to clear it.

    Thanks

    Lilani

  • ZappyZappy Accredited Partner Posts: 4,459 ✭✭✭

    Glad we got that sorted. Happy New year

  • brianbrian Member Posts: 53

    I didn't understand what a "second negative line on the adjustment note"" meant so in an endeavour to clear my accounts for December EOFY I put an invoice through to the supplier and used the payment to clear that, then went to the credit note, zeroed it and cross referred it to the invoice and payment for future audit. This seems to work OK.

  • ZappyZappy Accredited Partner Posts: 4,459 ✭✭✭

    That's a shame. I thought we fixed this yesterday. Its not complicated.

  • brianbrian Member Posts: 53

    I am not sure what you fixed, nor what is "not complicated".

    What exactly do you mean?

  • ZappyZappy Accredited Partner Posts: 4,459 ✭✭✭
    edited January 9

    Here ya go, I thought we fixed this. If you understand the accounting, it's very simple


  • brianbrian Member Posts: 53

    OK I see what you mean now - so that negative entry will clear the credit in the bank account where the supplier paid?

  • ZappyZappy Accredited Partner Posts: 4,459 ✭✭✭

    Honestly I thought I was pretty clear yesterday.

  • brianbrian Member Posts: 53

    So to repeat the question - will that clear the supplier payment in the bank account?

  • ZappyZappy Accredited Partner Posts: 4,459 ✭✭✭

    If you look in the bank account its there. Do you have a bookkeeper,

  • brianbrian Member Posts: 53

    I don't have a book keeper - I am a one man electrical contractor with limited accounting knowledge but I don't see how that will get rid of the supplier's payment. I know my way did, but will yours?

  • ZappyZappy Accredited Partner Posts: 4,459 ✭✭✭

    Yes ive been using Reckon for twenty years. I'm an accountant bookkeeper bas agent by training.

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