Payment refund from a supplier.
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?