Deposit refund

I paid a deposit on a van rental, for which the invoice was generated upon return. The invoice shows the deposit payment two days prior to the invoice date and then a partial refund of the deposit less the rental amount on the date of the invoice.

I have tried creating an invoice for the total of the rental and deposit then producing a credit note, or simply for the rental amount, but whichever way I try I either end up with an error that I am unable to allocate payments for more than the invoice total or unable to tag a manual payment (the refund) against the invoice, getting a message that no matching invoice exists.

What would be the correct way to record this and the order in which I should enter the records?

Hi @MarkManning

What you could do, is with the deposit leaving your account, hold it on the suppliers account. You can do this by click the ‘Tag Me!’

Select ‘Payment to a supplier’ and then ‘Pay multiple invoices’:

Click to assign it on the account, and save:

This would then sit on their account as a credit:

Create your invoice as normal when it’s issued:

Log the deposit:

In my case, it leaves a balance of £150.00

If I then have to pay the remainder, minus the deposit, I could credit note the invoice for the £50.00 deposit, and tag the corresponding bank transaction for £100.00 to the invoice.

I hope that helps! If you need further help, please let me know

I think this last bit is where the issue is, the deposit in my case is for more than the rental, so I am unable to create a credit note as it won’t let me credit more than the outstanding amount.

The deposit was £150, the actual rental was £73.25 so when I received the invoice I also received a refund of £76.75.

Ok, in that case, create the invoice for the rental (£73.25):

Log the payment of £150.00 coming out of your bank, and tag it to the suppliers account:

Which is then shown here on that supplier’s dashboard:

Log the payment on the invoice from credit:

And that brings the invoice up to date, and paid. Now for the refund. go back to the supplier’s dashboard, and click View > All Payments

Click into that payment record:

And click ‘Refund Balance’:

Thank you for your help, I’ve just been back in to the office and this worked perfectly.

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