Refund receipts onto account - still cant find a good way of doing it

hi

refunds are taking far too much time and they are not straight forward to do, for me, or for the admin i use for data input.

as an example company Toolstation.com

I make regular purchases online, usually daily, and receive items.
My purchase invoices get added to my trade account.

Usually once per month, i return items not needed or over ordered on jobs.
These returns span across multiple invoices, and they raise multiple invoices.
They do one refund receipt per items associated with one invoice.
These also get added to my trade account as seperate invoices with a Minus amount.

At the end of the month i make one payment, select all the standard invoices, select all the minus invoices, and make one payment to cover them all.

I get all invoices sent to me via email.
I forward these into my quickfile account.

I have sombody data input receipts, usually 7 toolstation per week.

Refunds do not work the way we do it and cause a lot of issues.

If we use the receipt hub, input a minus figure, it wants to associate the refund credit note with an associated purchase invoice.
The problem is, there is no way of knowing which one it is, just by the limited list of purchase invoices quickfile pops up with.
Even receipt numbers if used in the description dont work as there is no association with the orignal receipt on toolstation refunds.

We physcally have to do a search in our email for the item number thats been returned, find the invoice it was purcahsed on, find that in quickfile, tag the refund to that.
Its a nightmare.

Surely there must be a better way of doing it, without associating credits or refunds with a specific invoice?

Id like somebody to just sift through the receipt hub and tag refunds like they do purchase invoices by creating a new invoice for each.

What am i doing wrong, or how can it be made easier?

Hello @adnw

Do you have a bank feed?

If you do leave the refunds untagged.

You could record a manual credit once a month and list all the credits on it together then refund it.

The refund would then replace the bank transactions which you could then delete and the bank would then reconcile at the end of the month.

Yes i have a live bank feed.

They dont get refunded to my bank.
They get refunded to my trade credit account as a minus figure invoice.
My trade account is paid once per month

The next part about deleting the bank transaction doesn’t apply, there isnt one.

Hello @adnw

In that case, instead of refunding the credit, save it to the client account.

The value would then go onto his account as a prepayment allowing you to pay other invoices using it.

I think i understand, but it still raises the problem that if you use the receipt hub to tag receipts, then input a minus figure, it it wants to associate it with an existing purchase, even if refunding to the clients account.

The refund receipt that gets tagged has no reference or information at all to associate it with a purchase invoice, and to make it even harder, quickfile just pops up a list of previous invoices with limited description to choose from.

This is our problem.

The person tagging the receipt has no idea or way of reference in quickfile which purchase invoice to associate the refund with, using the quickfile receipt hub tagging.

If they could just create a minus figure invoice, and refund to the client account as a credit, without association to a purchase invoice, it would work perfectly.

Hello @adnw

I mentioned previously

You could record a manual credit once a month and list all the credits on it together.
instead of refunding the credit, save it to the client account.

This would create a credit on the clients account, if you wish you can then attach the refund receipts to the credit note in the file attachments section rather than using the receipt hub.

So if i understand this correct, do i:

  1. Dont email the refund receipts i receive to the receipt hub.

  2. Once per month, when it comes time to pay the credit account, create one credit note with wll the refund amounts on each line to create one large total. Then credit this one minus figure to the suppliers account.

  3. Then somehow use this supplier credit to pay down some of the unpaid invoices.

  4. Then when a bank payment is made to clear the outstanding unpaid invoices, tag this to the remaining unpaid invoices?

?

Can i do something like this:

Create single individual supplier minus credits/ refunds, not associated with a purchase.
Attach the suppliers refund receipt.
Refund these to the suppliers account.

Once per month, pay the supplier what i owe.
Tag this bank payment to the suppliers account rather than invoices.
The total suppliers account balance should then equal outstanding unpaid invoices.
Use that balance to pay them all.

Or am i getting it wrong?

Hi @adnw

The steps you outlined should work in this scenario.

Instead of using supplier account credit, you could use a dummy bank account (e.g. “Toolstation Credit Account”)

You could then put this in place of the supplier credit, so -

  1. Enter all your purchases as normal

  2. You can create the credit note (either through the receipt hub or as a stand alone purchase), and mark it as paid from the dummy bank account.

  3. Mark all the outstanding sales invoices that you’re going to pay, as paid from the same dummy bank account

  4. The balance on the dummy bank account is what’s owed.

So, as an example, I’ve created my holding account -

And let’s say in January I spent £553.18 across 3 purchase invoices, and out of this, £115.00 was credited.

I’d have the 3 purchases -

I’d enter my credit note -

Clicking “Save Details” will give me the option to refund to an account or hold it on account. I’m going to refund it to the new supplier credit account -

image

You’ll now see a positive balance on the bank account -

Now, you can pay the purchase invoices from the same bank account -
purchase invoice tagging

This shows the true balance on the dummy bank account -

When you then pay £438.18 from your current account, you would tag this as a bank transfer from the current account across to the dummy credit bank account.


This should hopefully give you the desired effect. It still makes it easy to track.

One thing to bear in mind, is it you’ve VAT registered and on cash accounting, then paying the invoices from the dummy account will make them show up on your VAT return. But if you do this as close as possible to the actual pay date, then it should all balance out for you.

Hope that helps!