Hi
We use Cash Accounting for VAT. Client made payments of £402.00 twice, one was allocated to invoice with exact amount. Another payment allocated in part to another invoice of £85.00. This resulted in overpayment of £317.00. Now I have refunded £ 402.00 (as requested by client) and client will make seperate payment of £85.00.
Problem I can not (rather refuse to stating No qualifying sales invoice could be found to refund against. Make sure the corresponding invoice has been logged before you attempt to process this refund.) allocate this refund without creating credit note, but this will effects VAT Return.
When you click “Save”, it’ll prompt you to select the account and method of the refund:
This will create a new bank transaction for you, which means if you have bank feeds enabled, you’ll end up with 2 in your current account, similar to this:
Just delete the untagged entry so your account balances.
The credit note itself isn’t pulled through to the VAT return, it’s the payments that will affect it, as you’re on cash accounting. By creating this bank transaction (which is pre-allocated to the credit note), that’s what will appear on your next VAT return.
If you click through to the part-allocated payment you may be able to “detach” it from the £85 invoice to make the whole payment unallocated, and then “refund balance” to create the refund transaction. That way there’s no credit notes involved - by the sound of it you’re not wanting to actually cancel any invoices, just refund a prepayment made in error.
“Refund balance” will create a pre-tagged money out transaction on the bank account that duplicates the untagged one from your bank feed, just delete the untagged one to bring things back into balance.
