Morning
We have a supplier that paid one of our invoices but the amount paid included a double vat payment. The best resolve in this situation appeared to be to refund the supplier and reinvoice out but how do we tag off the incoming/outgoing payments?
The original incoming payment - tag as payment from a customer, pay down multiple invoices…, select the invoice that they paid and leave the excess (the duplicate VAT) unallocated. This will leave the excess showing as a “prepayment” on their account.
Now click the green “tagged” button next to the incoming transaction you just tagged, the word “payment” in the little popup is a link that takes you to the QuickFile record of that payment showing the allocation. At the top of that should be an option to “refund balance” - set the date of the refund to the date when the returned money left your bank account.
You should now have two money out transactions showing for the refunded overpayment, one untagged that came from your bank feed and one tagged that was created by QuickFile from the “refund balance”. You can safely delete the untagged one to bring things back into line.
Or do you mean you refunded their payment in full, and intend to credit the original invoice and issue a new one in its place? In that case I’d just tag the original payment in as “payment from a customer”, “pay down multiple invoices”, but not assign the payment to the original invoice, just leave it all unallocated. Then you can “refund balance” to account for the repayment in full.
The original invoice will still be showing as unpaid, you can either leave it like that and then allocate the correct payment to that later, or you can credit note the unpaid invoice and then issue another.
Morning Ian, the client has a 90 day payment window so to avoid future complications we refunded the lot and they resubmitted it for repayment. So do i still adopt your second suggestion? Atm i believe theyre still paying our original invoice but ive got 2 entries to tag, 1 for the incoming payment ÂŁ5400 and 1 for the total amount refunded ÂŁ5400.
If you have £5400 in and the same back out then yes, the most accurate recording would be my second suggestion - tag the “in” as payment from the customer but don’t allocate it to the invoice, then go into the payment and refund the balance in full. This will create a duplicate “out” transaction for £5400, you can delete the untagged one.
Thanks so much Ian, resolved using your suggestion.
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