Refund doesnt match purchase or supplier - advice please

Accounting
1

Hi,

I purchased an item from a supplier and it was faulty so I had to be return it. I also had to pay £11,99 postage so I have a purchase of the original item from the supplier and a second purchase of £11.99 for the Post Office. The supplier issued me with a refund that matched the purchase so I just did a credit note, no problem.

The problem I now have is that rather than refunding me £11.99 for the postage, they refunded me £12.00. When I now go to tag the refund credit showing on my bank back against the purchase, I get an error message:

“No qualifying purchases could be found to refund against. Make sure the corresponding purchase has been logged before you attempt to process this refund.”

I presume this is due to the 1p difference so it cannot see a matching transaction to credit against. If I try and do this the other way round and go to the £11.99 purchase and run a credit note, I select the bank account the credit went into and as it sees no match, it creates the credit note and adds a second credit of £11.99 to the bank account so I end up with 2 credits.The genuine one and a second one created via the credit note process. I know if the credit process identified a matching amount in the account it would link the 2 but as it doesn’t, it creates a new credit for £12.00

I have no idea how I can make this work. Any advice appreciated.

Thanks

2

You won’t be able to bank tag this if the amount of the refund exceeds any prior purchase (even by 1 penny). What you can do however is go into the new purchase form and enter a negative amount for £12.

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Don’t forget to set the date to match the date the £12 reached your bank account. When you hit save it will ask you which bank account you want to refund to.

Then all you need to do is go to the bank and delete any untagged duplicates for the £12.

3

Hi Glen,

Thanks for the quick response. My initial purchase for the postage is for £11.99 and this matches and is tag’d with £11.99 that shows on the bank account.

So I need to modify the original purchase of £11.99 and change it to -£12.00?

When I tried that, I get a message “The value of the purchase must be greater than zero”

If I go to the original purchase and raise a credit against it for -£12.00 it says “Credit Note value cannnot be positive”

So if I am being stupid but either option gives an error if I enter -£12.00

4

If the original purchase is £11.99 and appears as such on your bank you should leave it as is. As mentioned in my last post you need to manually enter -12 as a purchase and this will force a refund to your bank to account for the refunded £12.