I had made a payment of £20 under my nominal category of Training. I then got a refund for the training course due to cancellation, I tagged the refund from the bank feed as a refund from supplier, and linked the credit note to the initial payment / invoice.
In my nominal accounts the £20 payment is shown as a debit under Training but the refund is listed as a credit under Creditors control account.
Should this refund be shown as a credit under Training? Otherwise the costs for training are incorrect. How do I correct this?
There are two separate sets of nominal transactions that come from a purchase or credit note. When you create a purchase record you get a debit on the selected purchase category and a credit on the “creditors control account”, when you pay for the purchase that’s a debit on creditors control and a credit (i.e. money out) on the bank account from which the payment was made. If you created the purchase at the point of tagging a bank transaction then both of these pairs will likely be on the same date, but in principle the purchase and the payment are two separate things, and the creditors control account tracks how much you owe to suppliers but have not yet paid them.
For a credit note it’s exactly the same with the credits and debits reversed - technically the refund transaction is indeed debit bank and credit to the creditors control account, but there will also be a purchase credit note which is credit training and debit creditors control to balance things out.