Reduce Supplier Prepayment because of refund


I’m new to the forum, this is my first post.

One of my clients pays a fixed amount each month to their energy supplier. I tag this as a payment on account to be allocated later and their supplier account is currently in credit.

They have received a bank refund and I need to reduce the payment on account by the same amount. I can’t create a supplier account credit from bank tagging. I can create a credit note and manual bank refund transaction through the supplier account but this doesn’t reduce the payment on account.

How can I account for both the bank refund and also reduce the payment on account?


Hi @PinnacleBK

Welcome to the forums!

You would need to do this from the payment list itself, but I’ll walk you through the steps :slight_smile:

  1. First thing to do is to locate the payment on their account. Firstly, go to Purchases >> All Suppliers, and select the supplier (there are several ways to arrive at this screen). Then go to View >> All payments. This lists all payments. If you do an advanced search for Unallocated, this will show you just those that are sat on the account as prepayments.

  2. View the payment details to reveal a “refund” button. This will appear at the top:

  3. Click the refund button and follow the steps. This will then create a bank transaction in the bank account in question:

  4. If you have imported a bank statement, it may create a duplicate transaction. Simply delete the untagged entry:

Hope that helps!

Thank you, that was just what I needed

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