Hi Team
I have an invoice from a supplier which I have added in the normal way but they have returned a deposit, if I raise a credit I have to apply it to the invoice which messes up the amount I can apply to the invoice and doesn’t bring up the credit!
Can I do this? Or do i just need to raise the invoice for the full amount (returnable deposits are not VATable) and then code the refunded deposit via the tagging?
Thank you
Hello @Chumps999
How was the deposit tagged originally - was it assigned to an invoice, or just saved against the suppliers account?
HI
The deposit has not been tagged yet. I raised the invoice and then raised a credit note. It was for Van hire so the money was taken one day then the deposit returned the next day.
In the bank there is a debit and a credit entry
Thank you for your help
Hi @Chumps999
For a simple deposit like this (paid and refunded in a short period), I would tag the payment out as a prepayment, and then refund it. This would avoid creating a credit note and would maintain your bank statement entries.
When you tag the prepayment, select Payment to a supplier >> Hold on account or pay down multiple invoices, enter the supplier name and save it.
Then follow the steps outlined here to refund the transaction:
This will create a new pre-tagged entry, but you can then remove the duplicate untagged entry.
Hope that helps!