How to deal with a refund from a supplier for a duplicate payment
I've read the other queries relating to refund by supplier - not sure if I got the correct way to deal with it! Help would be greatly appreciated.
I paid a supplier twice. The supplier issued two invoices for NEW jobs, and used my over payment as a credit. The supplier then issued a refund for the difference, the funds were deposited into our bank account.
Example - over paid $20, two new invoices totaling $10, refund of $10
Here's what I did:
- Issued a credit note for the full amount of the over payment.
- Entered the two new invoices against the Supplier and paid them from the credit I created.
- Made a deposit against the AP account for the funds deposited into our bank account.
These steps balanced the Suppliers account BUT I don't have anything to link to the deposit when I do the bank reconciliation.
Where did I got wrong? And how do I fix it?
with thanks
Answers
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Hi @SueCurtis
In this scenario, you don't need to create a separate Bill Credit as the credit balance already exists (from the overpayment)
You just need to apply the "refund deposit" against this remaining Credit in Pay Bills:
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