Credit Notes Refunded

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?


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!