Credit note for invoices and bank account refund

I have a strange credit issue with 2 invoices.
Invoice 1 was paid twice and I originally allocated the bank payment to the invoice so it had a surplus. Then I remove one of these allocated payments, leaving the surplus in the bank account.
The 2nd invoice was paid by the customer but then paid by the another company due to their fault.
I remove my original payment from my customer and then tagged it with the other companies payment.
I issued a refund via my bank and now the imported bank statement has 3 untagged items that I can not tag.
What is the best way to do this?

The simple method is to tag as ‘Something else not on this list’ and use the ‘Suspense Account’:

Once you tag both the money in and out, the net balance will be zero.


  • The other method is to tag as a 'Payment from a customer >>Pay down multiple invoices or assign to a client account >> Allocate to Customer >> ‘Payment on Account (Assign later)’:

  • Now, create a new holding bank account called ‘Refunds and Corrections Holding Account’:

  • Go to the client and click ‘View >> All Payments’:

  • Select the unallocated payments and click ‘View Details’ followed by ‘Refund Balance’ to the new holding account:

  • Repeat the above step for all refunds that need to be processed.

  • Finally, tag the bulk refund from the current account as a transfer to the new holding account:

The balance on the new holding account will now be zero, the overpayment and refund has also been allocated to the client for a clear audit trail.

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