I’m trying to work out how to process an over payment to a supplier.
I made a purchase to a supplier for £500.00 that is paid by direct debit.
Unfortunately the supplier put in a Direct Debit charge for £1000.00 then on the same day issued a refund.
Now if I allocate the £1000.00 to the purchase I have £500.00 on account that for the life of me I can not allocate the refunded direct debit.
What is the correct way to process this.
So what do you have on your bank account? Two transactions (1000 out and 500 in) or three (1000 out, 1000 refunded and then 500 out again)?
I have just two payments:
The over payment of £1000 and
The second is the refund of £500
I seemed to have found away that cleared all but 1) I had delete the refund. But when I next uploaded the bank statement there is was again.
There must be a way to use this payment.
When I try to allocated the refund it say nothing to refund it too. Try manual refund.
Hi @ultraview
The way you would deal with this, is having the following:
1,000.00 OUT - Tagged to the invoice of 500.00, and the overpayment assigned to their account to allocate later. You can do this by selecting the ‘pay down multiple invoices’ option from the tagging process:
If you’re on cash accounting VAT, just tag it to the invoice - the rest will automatically go to their account as credit.
The Refund
Then, you would need to refund this from the suppliers account. Go to the Purchases >> View payments >> Select the payment in question
Click ‘Refund Balance’ and follow the prompts
This will create a new bank entry which would be a duplicate of the original refund. You can safely delete the untagged transaction, and your bank should now balance.
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