Howto "Credit note" (Refund made on a different bank account)

Hi, so I looked at the forum but none of the answer regarding “Credit note” helped me so far.

I received a refund on a different bank account that the one I paid from (it is also a bank account with USD as currency, while the one I paid from is GBP)

I already tagged the entry that I paid and so I have a “purchase” entry for it

Now in the bank account I received the refund, the system cannot find the respective purchase. it says

“Invoices with items posted to more than one nominal account will not appear here. For such cases a manual credit note will need to be applied.”

How do I proceed ?
Should I create a credit note in the “purchase entry” but then how do I tag the refund entry to link to it ?

Hello @wighawag

Unfortunately you can not refund a GBP credit note in USD, follow the steps below to net off the transactions.

  • View the invoice
  • More Options > Credit Note
  • Edit the values if necessary > Save details
  • Refund the Money using a GBP bank
  • Tag the entry in your USD account as a bank transfer from the same GBP bank used in the previous step (the 2 transactions in the GBP account should net off)

Thanks @QFSteve for the quick reply

To clarify,
the invoice is the Purchase entry QF… generated after I tagged the purchase ?
Re “Refund the Money using a GBP bank” how do you do that ?

Hello @wighawag

To clarify,
the invoice is the Purchase entry QF… generated after I tagged the purchase ?

Yes open the paid purchase invoice > More Options > Credit Note

Re “Refund the Money using a GBP bank” how do you do that ?

When you save the credit note you are prompted for the refund, make sure you select the GBP bank you wish to go through (none GBP accounts will not show in the list)

Here is an example clip

refund credit

1 Like

Yes, the “invoice” is the Purchase record in QuickFile. There are a number of different ways to create these; in principle the “purchase” represents the invoice your supplier sent to you, ideally it should exactly match whatever that supplier invoice says, including the date and the currency. There are some shortcuts, for example if you tag a payment to a supplier and you haven’t already created a Purchase from the supplier’s invoice that matches the amount you paid, then you get the option to create a purchase as part of the tagging process, with its amount and date taken from the transaction you are tagging. It sounds like this is how you’ve done it, so your Purchase record in QuickFile is in GBP.

However the way you describe things I’m going to guess that the original purchase was invoiced by your supplier in USD, you paid from a GBP bank account (involving a currency exchange), and the supplier has now refunded you in USD. If that is correct then what you should probably have done was to create a purchase in USD when you received the supplier’s invoice, then assigned the GBP payment to that as a cross-currency payment (I’m not sure off the top of my head whether you can do this by bank tagging or if you’d have to “log payment” against the purchase itself).

With the purchase record being denominated in USD it would then be available as an option when tagging the USD refund transaction.

1 Like

This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.