Credit Note issues across year end

Ive just received refund for an iphone purchased in the last financial year. My year end is March 31st & I havent finalised or locked my accounts. The invoice from last year was matched by processing the bank transaction as a credit note and now shows as fully refunded. However my P&L line item (Mobile phone) shows a positive balance for this year for this amount and has not reduced last years balance to zero. So im showing an expense that has been refunded. Is this correct?

The P&L entry for the refund will be on whatever is the date of the credit note. If the expense was incurred last year and refunded this year then yes, I’d expect last year’s P&L to show a debit (red) for the original expense and then this year’s P&L to show a credit (green) on the same nominal for the refund.

Ok,thanks, is there away of changing the date so that the recently received refund cancels out last years purchase? Or can I journal to resolve?

I suppose you could make a journal on the last day of your previous year to credit the expense code and debit accruals, then have it auto-reverse on the date of the credit note, but I’d want to double check with my accountant that this is reasonable first. The credit note you record in QuickFile should still match the date of whatever refund receipt you got from the supplier.

If you’re VAT registered you presumably already reclaimed the VAT on the original purchase back when it happened, and the credit note will account for the reversal of that VAT in your next return (even if you do the reversing journal thing - journals don’t affect the VAT return in QuickFile).

Thank you Ian, that’s helpful👍

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