Credit Note and Reconciliation

Hi - I tried to pay into my account a cheque for £20 - but the bank rejected it immediately (the name was incorrect). So on my bank statement in quickfile it first shows the money going out rather than crediting first, then the bank credited it a few days later. When I am reconciling my accounts and I try to refund a customer it tells me to create a credit note, which I have done. When creating the credit note one can either credit it to a bank account or to the client. I have done both ways but neither allows me to refund the customer once the credit note has been created in the reconciliation.
Please help!

Hi @hugofoto

I can’t say I’ve come across the money going out before it comes in, but I can see why that would cause a bit of an issue.

If you select the option to refund it to a bank account, this would normally create a money out transaction for you already tagged to the credit note.

I think for the purpose of reconciling the bank, you have 2 options really:

  1. Either delete both transactions. The one would cancel the other out anyway, but this would also leave the invoice showing as ‘unpaid’ (which I assume is correct?)

  2. Tag the money out transaction as a transfer to a dummy bank account (e.g. ‘Cheque holding account’). Tagging the money in transaction as a transfer from the same account would then balance that out.

If the money was shown in the correct order (money in, and then out), I would have suggested perhaps tagging it as a prepayment from the client, but given that it’s the other way around in this case, I believe one of the two options above would be better.

I hope that helps

Thank you for your help!

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