Supplier Credit Note

Accounting
1

Please could you tell me how to apply a credit note from a supplier?
We have received a balancing service charge credit note from our landlord and I am unsure how to log this? the credit is not against 1 invoice but is an accumulation of over 10 invoices, can I apply a standalone credit to their account or do I have to attach this credit to one of their invoices?

Many thanks
Rob

2

Did they actually refund anything to you? Or are they holding funds on account?

3

We have just received a credit note so assume they are holding funds on account

cheers
Rob

4

If this is the case then locate the last purchase invoice, click the credit note button and when saving select the option to hold the funds on account.

This will move the balance to the supplier account so it can be used to pay down future invoices.

If the amount credit noted exceeds the value of the last invoice you’d need to issue further credit notes on earlier invoices until the amount is reached. Hope that helps!

5

hopping on this post, i have received a credit and applied it to the original invoice and placed the funds back on account…

it shows as a supplier prepayment…

now the refund has came back on my credit card, selecting supplier refund asks for invoice, how do i skip this and nett if off the prepayment amount on account…

thanks
scott

6

Hi Scott,

You are unable to allocate a refund balance against a pre-payment balance. The best way to do it is to allocate the refund to the credit note

7

ok, i went to the credit note and issued a refund to the credit card, so now i have two entries for this in credit card and it has thrown out the balance, do i delete the original one from the credit card feed?

the original one is untagged, and the new one is tagged to the credit.
thanks
scott

8

Hi Scott,

Yes - delete the original credit card posting which isn’t tagged to anything this will remove the duplicate :slight_smile:

So on the supplier account you should have the invoice linked with the payment and the credit linked with the refund?

9

original invoice is still paid in full

i detagged the credit amount which caused the prepayment…, i think its all ok…

i have an amazon credit on my card, but that one i just simply tagged it against the original invoice

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