Hi,
I am having issues with allocating supplier credit notes - Credit note is created by entering negative values in the invoice screen, but when I attempt to tag the bank receipt I am only presented with invoices and not the credit on the account. Surely there is a simple way of allocating the two?
I could process a credit against an existing invoice, but this gets messy as it QF creates another receipt in the bank which means that the original entry which has already been imported has to be deleted, and is second best option!
Sadly not. If the supplier has actually refunded the money to you then you have to let QuickFile create the duplicate pre-tagged money in transaction and then delete the untagged one from the bank feed to keep things in balance.
If you’ve already created the credit note with funds held on account then you can go to the resulting payment record (go to the supplier’s summary page, view all payments, and if it’s not immediately obvious at the top of the list then do an advanced search for type “unallocated”) and use the “refund balance” button at the top to create the refund transaction.
When I do this admittedly in another software, I have to mark the credit note as paid first using the date the funds went into the account, then when i go to tag it the system will pull through the credit note so the second paragraph of what “mickd” has said is the easiest way I think.
… which doesn’t help someone trying to do this in QuickFile.
In QuickFile it is not possible to tag an existing bank transaction to a “held on account” credit note. The only option is to start from the credit note end (either by selecting the refund option in the first place at the point of creating the credit note, or by doing “refund balance” on one that has been held on account), which will create a pre-tagged refund transaction, then delete the duplicate untagged transaction from the bank account.
When you receive a credit note that the supplier intends you to deduct from your next payment, then you enter it in QuickFile by using “more options” → “credit note” on the original paid purchase that they are crediting. This will then show as a pre payment on the supplier’s account.
Next time they invoice you you create the purchase as normal based on the invoice from the supplier, then “log payment” and you’ll see a checkbox to “apply from credit”. This will assign the “pre payment” credit as a partial payment towards this purchase, reducing the outstanding balance. Then when you next pay the supplier you just pay them this reduced balance rather than the full purchase total. You will probably find you have to use the “pay down multiple invoices” route if you apply the final payment via bank tagging as part paid purchases don’t show up in the initial automatic list of matching purchases.
I completely agree Lurch. Credit notes should be treated the same as invoices and this has been the case in al other accounting systems I have used. They often do not relate to a specific invoice and are a separate document. I think that maybe QF has been set up this way to simplify the process but has achieved precisely the opposite.