Credit Notes - Select bank account to refund from

Please can someone help - I am new to the community.

I have tried to post a credit note but it will not give me the option of the specific bank account I want to post this to, Why?


First you need to preview the invoice you want to refund (It must be a PAID or PARTPAID invoice):

Click the Credit Note button. When you save the credit note you will see an option to select the bank account to refund from.

Hi, I have a credit note from a supplier which does not relate to a previous invoice. I don’t want this to be linked to the bank account, as it will just offset whatever else is on the supplier account. I tried opening a new bank account called Opening Credits as suggested, but here there is no facility to put in an expense code, and also, what would I then do with the balance sitting on this account?
Your help will be much appreciated.
Regards, Britta

Hello I have a similar request. I have received a credit note from a supplier as we overpaid on an invoice. the invoice has been fully paid up but when I allocate the credit from the supplier is says it is unallocated and looks as though it is a credit on the supplier. How can I make this balance zero please?

Where did the credit note originate from? Why was it issued?

@eftlizzie in general you would go to the overpaid invoice and click the credit note button. Save the credit note then allocate an account to refund the amount to, if there is no refund and the funds are held on account for furture use there will be an option hold funds on account.

Quick File Guide to Credit Notes

Hi Glenn

The credit is an over payment we made to a supplier. The credit has appeared in the bank statement and when I tag it to the already paid invoice then it just issues a credit note and shows CREDIT in red against the supplier. I de-tagged it and tried to issue a credit from the already paid invoice but when I allocate it to an account, it shows twice in the bank statement. It seems that you cannot show an overpaid amount on the invoice.

I’ve replied to you on a PM. It’s easier if I can relate this to what’s happening in your account.

One thing I would say though is you can just deleted the untagged duplicate on the bank, that would work fine. There’s always a few different ways of doing these things but the NET effect should be the same.

Hi Glenn,
The credit note is for a rebate which we receive every quarter. The money is not paid to us, it’s just that what we owe the supplier is reduced by this amount. Last time I ended up raising a sales invoice but this wasn’t right as it needs to show on the purchase ledger. I therefore don’t have a paid invoice to credit, as I will only pay what we owe them.
Thanks, Britta

@Britta So what you ordinarily need to do in this situation is wait for your supplier to raise the next invoice then either.

A. Enter the invoice less any rebate offered and pay the NET.


B. Create the invoice at the full amount and then apply a credit note to the balance of that invoice and pay the NET.

Either way the outcome would be much the same.

Ok, I will try this but it doesn’t seem to be the correct way to show it in an accounting way. Is it possible to change the credit note thing by not having to link it to a bank account?
Regards, Britta

It’s perfectly fine to do it either of the ways I suggested. Option B doesn’t require you to link it to a bank account, you are credit noting an unpaid balance.

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