Hi, I’m a little stuck with this one!
A customer purchased an item at £14.99 inc VAT (£12,49 ex VAT) on a credit card.
This item has been returned and a refund issued BUT the customer as taken the refund as a Shop Gift Card.
I am at a loss as to how to record this, as I need to show the return (so we can claim our VAT back) but then add £14.99 to our Shop Gift Card Account.
Sorry if I have not explained myself very well.
Thanks in advance.
Paul
Hi @TBL
How are you recording gift card sales within QuickFile at the moment? For example, are you using a holding account (bank account) within QuickFile?
Hi Mathew,
Yes, we have a holding account (bank account) within Quickfile for our Shop Gift Cards
How are you recording your sales generally? Are you doing one invoice per daily Z read for the aggregate sales, and if so has the value of the return (and the associated VAT) already been accounted for as part of the Z read totals?
Suppose for the sake of argument that you had £1000 of other sales on that day paid 75% on card and 25% in cash, plus the £14.99 refund. Then your Z read gross total is £985.01 and the resulting invoice would have two payments logged against it for £250 (to petty cash) and £750 (to the card holding account). This is £14.99 more than the invoice total so one of those two payments will show £14.99 unallocated - if you click through to that payment record there should be the option to “refund balance” to the gift card holding account.
Hi Ian,
The answer to paragraph one is yes, we do an invoice for all our daily sales.
But, the refund is for an item purchased back in July 2024!
I do understand your second paragraph, but I don’t think our present situation quite applies here, but I could be very much wrong.
Did you put the refund through the till? That’s the critical question. If the refund transaction is already accounted for as part of the Z read total then you don’t need to do anything special like raise a credit note in QuickFile, you just have the daily invoice total from the till being less than the sum of the cash+card that you took in that day, with the difference going to the gift cards account.
If the refund had been by cash or card you wouldn’t be asking the question because your Z total sales and the sum of cash and card takings would be equal.
It’s only if you didn’t put the refund through the till that you would then need a correcting credit note in QuickFile.
In effect it did not go through the system. Our POS just ‘transferred’ the refund amount (inc VAT) to a Shop Gift Card.
So it did not appear on the Z total.
If you’re sure it’s not already been accounted for then I’d just create a new sales invoice for your “shop sales” dummy client (the same one you use for the Z readings), tick the box to enter sales inclusive of vat and put -14.99 in the rightmost box, QuickFile will then calculate the net and vat from that, and change the label from invoice to credit note because the value is less than zero. When you save the credit note it’ll ask which account to refund from, select the gift cards holding account.
Many Thanks Ian.
That worked, VAT all accounted for and Quickfile Shop Gift Card holding account increased by £14.99 and it reconciles with our POS Gift Card Account.
Regards
Paul
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