How to record a refund from a vendor

Record vendor refunds by posting the refund against a stand-alone credit note or a payment on account.

When a credit note or payment applies to an invoice, use one of the following methods:

• Create a stand-alone credit note and refund it
• Unallocate the invoice and payment or credit note, then refund it

Choose unallocation when you plan to pay the same invoice again later.

Use this option when refunding a payment on account.

You can’t partially refund a single payment or credit note.

Apply the required amount to the invoice before refunding any remaining balance.

1. Go to Banking.
2. Select the required bank account.
3. Select New Entry, then select Sale/Receipt.
4. Select the Vendor Refund tab.
5. Complete the following fields:
   

   Vendor	Enter either the company name or reference, or choose the relevant vendor.
   Paid into Bank Account	Select a bank account from the drop-down list.
   Method *	Specify the payment method.
   Date Refunded *	Enter the date of the refund.
   Amount Refunded *	Enter the total amount of the refund.
   Your Reference (Optional)	If required, enter a reference for this receipt.
   Amount Refunded	Enter the amount of the refund.

6. Select the checkbox for the refunded credit note or payment.
7. Select Save or select Save, then Add Another to enter another refund.

Allocate partial refunds to the invoice before recording the remaining refund.

1. Go to Expenses.
2. Select Vendor Credit Notes.
3. Open the required credit note.
4. Select Record Refund.
5. Complete the following fields:
   

   Amount Refunded *	This field shows the full credit note amount and doesn’t allow changes.
   Date Refunded *	Enter the date of the refund.
   Paid into *	Choose the bank account used for the refund.
   Method *	Specify the payment method.
   Reference (optional)	If required, enter a reference.

   * Required fields
6. Select Save.