Correcting Creditcard refund back through bank account

I have paid an invoice by credit card. The invoice had adjusted vat, which is shown on the invoice as the full amount + vat less the adjusted value which has no vat. i.e Invoice Total 3500+ VAT = £4200, less adjustment £2,000.00, no VAT = £2200.00.

This invoice was later discovered to be incorrect and the supplier has issued a new invoice which is shown on the invoice as the full amount + vat less the adjusted value which has no vat. i.e Invoice Total 3500+ VAT = £4200, less adjustment £2,900.00, no VAT = £1300.00. Giving a difference of £900.00 which is being refunded direct to our Bank account not the credit card.

How do I enter this second invoice and record the refund to show the account as zero balance.


You could just open a new purchase invoice screen and enter the total as -900. When saving you will be asked to nominate a bank to refund the £900 to.

Glen thanks for your reply. I am unsure what proportion of this will be net cost and what percentage will be VAT

If you have the original invoice and the revised invoice you should be able to deduce the difference in terms of VAT, you can then manually key this into the Credit Note when you raise it in QuickFile.

Cheers Glenn that has worked a treat but has left me with a -£900.00 on the account … how do I clear that?


On what account? The bank account?

Glen it is showing on the purchase ledger of the supplier as a credit balance It is showing correctly in the bank account as money in. Do I need to raise a dummy invoice in the purchase record and will I be able to allocate this negative balance?

If you refunded it to the bank (by posting a negative purchase) it shouldn’t show as a credit on the account, are you sure this didn’t come from somewhere else? In the supplier view go to show all payments, this will reveal where that credit came from.

Glen, no I had put it on as a negative balance purchase invoice. I have deleted it and put it on the bank account as money in. I will just need to tag it then under the nominal code and it will not go near the Purchase ledger. This will technically leave the Purchase ledger incorrect as we did not pay them the total amount of the original invoice… we have in fact paid them the lower amount of the second invoice - but I have not entered that on the system yet as I have not posted the credit card payments yet. However, when i do I will be posting it to the purchase account. So will I tag this bank receipt against the purchase account?

Many thanks for your help.


This is how I understand your scenario (please correct me if I’m wrong).

  1. Invoice 1 raised by supplier for £2200.00.
  2. Invoice 1 paid from the Credit Card account (a dedicated bank account on QF).
  3. Supplier realises mistake and issues invoice 2 for £1300.00, cancelling invoice 1.
  4. Supplier refunds the difference of £900 to the current bank account not the CC account.

Explaining this in QuickFile:

  • In QF you would log invoice 1 for £2200.00 and pay it in full from the CC account.
  • Now when the refund comes, log a manual purchase invoice with a negative amount for £900 and pay this into the bank account.

Your ledgers should be fine as whatever was overcharged in invoice 1 has been partially reversed by the credit note issued in the second step. No need to log invoice 2 at all.

Hope that helps!

Glen, yes that is it exactly. I have done what you said and everything looks correct. many thanks for all your help.


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