Payment refund from a supplier.

brian_7664759
brian_7664759 Member Posts: 50

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

  • 1312029
    1312029 Member Posts: 23

    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

  • brian_7664759
    brian_7664759 Member Posts: 50

    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.

  • brian_7664759
    brian_7664759 Member Posts: 50

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

    What exactly do you mean?

  • brian_7664759
    brian_7664759 Member Posts: 50

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

  • brian_7664759
    brian_7664759 Member Posts: 50

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

  • brian_7664759
    brian_7664759 Member Posts: 50

    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?