I have just spent quite a while trying to figure out how to handle a refund from my electricity supplier that was a larger amount than any of my invoices/pre-payments, because when I clicked on the ‘Refund from supplier’ option in Bank tagging, it couldn’t find any invoices to refund that were less than the amount of the refund.
(I had up to now been creating an invoice for each payment to the electricity supplier, rather than treating these direct debit payments as the pre-payments that they actually are, but that’s a separate issue for me to sort out I think)
After lots of reading about workarounds, I eventually just tried creating a credit note (well, a negative amount purchase) for the refund amount (which created a duplicate bank transaction) and deleting the imported bank transaction. I’m still not sure if this is the correct thing to have done, but it seems to have adjusted the expenses and bank totals by the correct amounts, so for now it seems ok.
My question is, if this is indeed an appropriate way to handle a bank refund that is associated with more than one invoice, why can’t the bank tagging tool automatically create a credit note/negative purchase invoice from there (in the same way that you create a positive amount purchase invoice), rather than having to manually create it in the supplier account and then delete a pre-existing transaction?