We pay a fixed direct debit each month to EDF Energy. I tag these to the Supplier - building up a Credit Prepayment Balance in Creditors Control.
They then send an invoice every 6 months which I charge against the prepayment balance on the EDF account. However, they then, pay back any overpayment balance.
So, I now have a cash credit sitting in my bank statement.
There is no Invoice - so I can’t process as a refund.
If I Tag directly to Creditors Control Account (where the Credit has built up) it doesn’t apply it to EDF’s prepayment balance.
So, how do I correctly Tag a refunded payment on account?
Hello @JOglesby
You can not tag a refund via bank tagging.
View the prepayment on the suppliers account and refund it that way.
Once done go into the bank and delete the untagged transaction you have to avoid duplication.
Monthly payments to EDF refund the method that @QFSteve suggests are likely to be on a number of unallocated payments and the result would more than one entry in the receiving bank account.
Simply I allocate the payments on account to a purchase receipt using N/L Prepayments. A credit note for the prepayment purchase invoice can then be refunded as one transaction to the receiving account.
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