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Supplier owes us a refund - how to show credit due not in bank account?


I have a supplier that owes us a refund. Instead of giving us the refund they have used it to pay off the most recent invoice (that was incorrect from them anyway), however they still owe us about £50. i.e. an unpaid refund (we are in discussions with them!)
I would like to register this money with supplier records but without touching the bank account as the money never reached us. is this possible?
I don’t have a supplier ‘account’ set up as we don’t pay monthly with this supplier, just usual invoice records.

Any suggestions? I have tried registering a credit note through various routes but it always wants to refund to a bank account which I don’t want to do as we don’t have the money. Credit against the invoice paid not allowed as credit greater than invoice.

Help appreciated.

Hi @Susiec

As this is a refund, I’m assuming this was against a specific paid invoice (or multiple invoices), is that correct?

Yes, money is taken automatically but we raised issues with the supplier before the latest invoice was actually paid (we stopped the direct debit).
timeline is this:
invoice 1 £197.95 - paid DD
refund 1 £ -68.09 - refunded to bank account
invoice 2 £132.83 - no bank transaction
refund 2 -£185.05 - used by supplier to credit invoice 2. Leaving £52.22 of this refund not paid yet to us but is owed. It’s the £52.22 I’m trying log in the QF system, if possible.

I created a purchase invoice for the second invoice but don’t want to mark it as paid without knowing how
to do refund owed.

The simplest way to achieve this would be to record “refund 2” in two parts. First credit the unpaid invoice 2 in full (£132.83) and then log the £52.22 as if it were a partial credit against the paid-up invoice 1 - go to invoice 1 and do more options -> credit note, and set the correct net & VAT amounts and the date to match the date of “refund 2”. By creating this credit note against a paid-up purchase you should have the option to hold funds on account rather than having to refund them there and then.

What Quickfile needs is a better way of handling supplier credit accounts.

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