How do i record a supplier refund please?

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  • Updated 4 months ago
Using ReckonOne, newest version, Core module only.  Very new to this process and am having difficulty finding relevant process videos that answer this very likely simple question.

I have a credit receipt from a supplier for returned goods.  Original invoice did NOT have an 'Item' recorded against it, so the only transaction in the account at the moment is for the value of the original invoice, against relevant account code.

Now I have a partial refund of some of the value, in the bank account.  

How do I enter this receipt into ReckonOne?  If I try to put 'Money In' against the supplier, it complains that that supplier isn't a customer.

Help please...

Thanks
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Peter Selwyn

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Posted 1 year ago

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Rav, Community Manager

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Hi Peter

Welcome to the Community, 

We're actually in the process of creating a video on this topic but in the meantime, here's an outline of the instructions that we're using in the video which hopefully helps answer your question -

Receive a Cash Refund from your Supplier

To enter a credit granted you by a Supplier go to Day to Day;
Money Out  and Supplier adjustment notes.

You enter a Supplier Adjustment Note in the same manner you enter a Bill.
Click on Add,
Select the Supplier, and complete the form in the normal manner.
Complete Header details, and then in the table enter the details for which the credit is being given, 
Enter an item or expense account.
If the credit is non-specific then you may want to create a separate item for it.
Enter a Description; add Quantity if needed,
For the tax code, the same tax code you used on the original Bill – for example, NCG.

You can add more entries on to the form – 
click on Add new row and complete the details.

When finished check your entries and return to the top and click on Save & close.



You can apply this Refund to an unpaid Bill or receive funds for it.

To accept a cash refund, open the credit and click on Enter refund;
In the Enter Refund section that opens below, enter the details: Date;Bank Account to which the funds will be deposited, and the Amount.

If you wish to see the full Receive money form, click on the View full details field.
When all entries are done click on Save.

You’ll notice in the Adjustment Note table the Already paid line listing the amount applied, and
A reduction in the Balance Due.
The status at the top of the screen will show Closed.
It will also appear in the Closed tab of the Supplier Adjustment Note listing.

You can apply this Refund to an unpaid Bill or receive funds for it.  

To use this credit later just click on Close and you’ll see this Adjustment Note with a the status tag of Approved in the Approved tab.

To apply this Adjustment Note to a Bill, open it and click on Enter refund.
At the bottom of the screen an Enter Refund section will open.
The first line will find the total outstanding for this supplier.
Tick the checkbox and the fields below will change.
Click the dropdown of the Transactions to apply field to see the existing Bills this Adjustment Note can be applied;
Click on one of the choices and check the amount field.  It should be no more than the lower of the amount of the bill or this Supplier Adjustment Note. .
Click on Save to apply this Adjustment Note to this Bill.
You’ll notice in the Adjustment Note table the Already paid line listing the amount applied, and a reduction in the Balance Due.
When all the amount of the Adjustment Note has been applied the Balance due will show 0.00 and the status at the top will show as Closed.
It will also appear in the Closed tab of the Supplier Adjustment Note listing.


I know that is a lot of information, hopefully it makes sense but if you have any questions please let us know

Cheers
Rav
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Peter Selwyn

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Thank you Rav. 
Such a simple way of doing it - had not occurred to me to enter negative number.
I'm kind of wondering why the method described above needs to be done (for those who have the relevant modules), when such a simple method is equally available.
In brief words, can you explain the benefit of 'the longer method' please?  What does it really achieve that this simple method doesn't?
Thanks
Peter
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Qwerty

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30/06/17

Hi Peter,

Here is my 2 cents on this topic. Please note that i'm not an accountant.

If refunding a standard payment that is not linked to a bill (Core only module scenario) you could handle this using a negative payment.

Why? A standard payment would typically use a bank account, 1 or more expense accounts & the tax payable account (if using purchase tax codes with a tax rate higher than 0%) . The negative payment can successfully reverse these if you replicate the original payment but with negative values.

If refunding an open bill (a bill not linked to a payment) then you could handle this using a supplier adjustment note.

Why? A standard bill would typically use 1 or more expense accounts, the tax payable account (if using purchase tax codes with a tax rate higher than 0%) and accounts payable. The supplier adjustment note can successfully reverse the bill if you replicate the original bill on the supplier adjustment note (you don't need to use negative values on the supplier adjustment note).

If refunding an over payment or duplicate/double bill payment (i.e credit payment) you could handle this using a journal.

Why? A credit payment would typically use a bank account & accounts payable account. The journal (if entered correctly) can successfully reverse these two account entries. The journal should also be linked to the credit payment (via the Allocated tab after the jouranl has been created) to close the credit payment.
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Peter Selwyn

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Dear 'Qwerty', thank you so much for taking the time to explain this.  It's very much appreciated.
For me, since I'm not using bills, quite happy just entering money in and out against relevant Income/Expense etc accounts, the option to simply enter a negative value is perfectly fine with me.  Easy.

At some stage I need to get my head around Journals.  Somewhat Double Dutch to me right now.....  :-)

Thanks all again for your assistance.
Peter
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Qwerty

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Another scenario I forgot to include (assumes the book has the invoicing module). If a supplier is giving a refund for a paid bill, where you intend to bank the refund, not reopen the bill & not associate the refund to another a bill. You could enter a supplier adjustment note & then enter a receipt linked to the supplier adjustment note to finalise it. Reckon One does allow you to enter a receipt for a supplier contact providing that the receipt is linked to a supplier adjustment note. 

The supplier adjustment note would reverse the accounts/amounts relating to the paid bill & the receipt would bank the money.
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Scraps n' Naps

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Hi, I don't know if anyone will see this to respond as I see it was posted 1 year ago but I've just tried to add a refund using this idea of adding a negative amount in the "make payment" area but I keep getting a error saying "Total allocated amount is greater than payment amount."  I'm  not sure what this means.  Yes I am very new to this!