POSTING REFUNDS

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I have been paid a refund into the bank account, I have picked up the purchase as a credit and , cannot work out how to get that credit into the bank account when I go into supplier payments the credit is sitting there, I think this is where you apply it to another invoice but I need to get the credit into the bank account as a refund not apply it to another invoice
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Jan Marshall

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Posted 1 year ago

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Di Smith

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Hi,
I normally enter them as a general journal entry.

Use your bank that you put the money into in the Account column, then in the Debit column put the amount of money, then in the Name column use the supplier you have received the funds from.  Next line - in the Account column you use accounts receivable (or whatever your accounts receivable account is called), then in the Credit column the amount of money, and in the Name column again use the suppliers name.

This will put the money into your bank account, reduce the amount of money you owe the supplier (or put the account into credit whichever the case may be) and leave a trail to track the transaction should you need to revisit it at some stage.

Hope this helps
Di
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John Graetz

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HI Di.  As the credit is sitting against the supplier, which would normally be Accounts Payable, would not the second line of the transaction be to that account instead of to Accounts Receivable?

John L G

and don't forget to link the deposit to the supplier credit via paybills and assign credit.
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Jan Marshall

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THANK YOU