Hi - one of my suppliers is also a customer. From time to time they decide to contra off values which I handle by having a “fake bank account” which pays their bills & my invoices. Its not ideal, but this is the only way I can see of handling it.
This time, we had sent in a cheque, which they cashed, but also contraed off that value. They then refunded the value of the cheque through a bank transfer.
So I now have QF showing their bill paid by chq, their invoice paid in full by contra and a bank transfer “refund” which needs to go back into their supplier account. However there isn’t an option to tag a supplier pre-payment. When I try to tag it from BANK it gives me a list of previous CN to allocate it to and doesn’t show as a prepayment or credit for outstanding bills.
You will need to process the refund from the supplier account rather than from the bank. This will create another bank transaction for the refund amount so you will need to delete the original that came in with the feed.
You mention that they refunded the value by bank transfer, but you also mention that you want it held as a pre-payment. Have they actually sent the money back to you, or have they held it on account for future use?
I think the only way to solve it is to cancel the original contra payment on our invoice and use the supplier’s payment in to pay that invoice. Not accurate but it balances
