Refund to Customer

Support
1

Our customer paid us £720 (£600+vat) into our business bank account.
We have just processed a 50% refund of £360 back into their bank account.
When tagging this outgoing payment / refund we selected the ‘Refund to a customer’ option in QF and it has created a credit note.
Why? this is not a credit, it is a refund.
Are we doing the process incorrectly.?
Thanks J

2

Hello @Cartwrightj

Are we doing the process incorrectly.?

Yes, the credit reverses 50% of the invoice.

Workflow

  • Invoice for £120 (100/20 split shown on vat return and reported to HMRC)

  • Payment £120 gross (shown in bank)

  • Credit Note £60 (50/10 split shown on vat return and reported to HMRC reduces the sales and vat reported from the invoice)

  • Refund £60 gross (shown in bank)

5

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