Problems applying refund to credit


I am trying to apply a refund to a credit note for an already paid purchase invoice. I found the following suggestion in a previous post but it doesn’t seem to work. I have created a credit note but it does not give me the credit note option window.

Any ideas?


Apr '17

Hi @chrissiemof

I’m sorry to hear you’re having troubles with credit notes for suppliers. I will however try to help you the best I can.

Credit Note Hell

We are often issued credit notes for invoices that have already been paid so where is the facility for this?

If the invoice has been paid, simply go to the invoice that you’ve entered, and go to More Options >> Credit Note :

You can then adjust the credit note as you wish, and you’ll be prompted how you would like to save it, for example, whether to hold the money on the supplier’s account, or whether to create a new bank transaction:

Using this method, you can adjust the credit note to be for just a certain part of an invoice.

Credit Note Hell

Hi @tc5440,

When you created the Credit note can you go through the steps of how you did this?


Hi Beth,
I would have to delete it to do it again and show screen shots but I did it as above. selected more options from the top of the purchase invoice and then selected credit note. and saved it. What I don’t understand even if It is held against the suppliers account which it now shows as being, I cannot tag that with the refund transaction in the bank account.


You can’t tag an existing bank transaction to this but what you can do is go to the partially-unallocated payment and use the “refund balance” option at the top. This will create a new bank transaction that is already tagged, you then delete the untagged duplicate from the feed to balance things back up.

Apologies, I did not describe that correctly. The refund can be tagged to the supplier but they then have a credit balance I can do nothing with or if I don’t tag it then I have a credit to which I cannot link a refund.

This is what I was trying to describe above - there’s no way in the bank tagging procedure to go from an untagged “money in” transaction on your bank account to saying “this transaction is a refund of my credit balance from supplier X”. What you have to do instead is start from the original payment record that gave rise to the credit, which you can find via various routes - I find the simplest is purchases -> all payments -> advanced search, and search by the name of the supplier and the “type” of “unallocated”.

Once you’ve found the relevant payment and clicked through to the payment detail page you’ll see an option at the top to “refund balance”, which will create a brand new bank transaction which is ready-tagged. So now you have two transactions for the same amount on the same date, one tagged and one not - just delete the untagged one to get back to the right balance.

Hi @tc5440,

Let me know how you get on with @ian_roberts’s instructions… If you still need some help or further explanation then please let us know :slight_smile:

Still no luck. Now I can’t even allocate the refund to a supplier. help!

So, do you have the refunded amount sitting in your bank now untagged?

Let’s start again.
I made and paid for a purchase which was subsequently returned. The purchase invoice is paid and complete. When I made the return I created a credit from the original purchase. This credit has created a credit value against the original purchase. I have subsequently received a refund. So now I have a purchase with a credit value and a bank transaction I cannot allocate.

Yes I do and I cannot allocate it to a supplier.

Ok, If you delete the credit from the supplier, and then make sure that the invoice is tagged to it’s payment.

I’m assuming you then have the untagged refund in the bank. You should be able to go into the bank view and ‘tag’ the transaction


Chose the option refund from a supplier - chose the invoice from the drop down menu then add notes if necessary and Save.

This will create the credit note automatically on the supplier account


thank you. So easy when you know how!

Thanks @ian_roberts for your help also.


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