We have received a number of credit notes from a supplier which do not relate to any purchases but are rebates due based on reconciliations for previous years. I have posted the credit notes to the supplier account and the supplier has refunded the money to us, however, I cannot tag the amount received as a Supplier Refund as it says no previous purchases can be found. Why does the program not pull up the outstanding credit notes for me to allocate the payment against? And more importantly, how do I deal with this receipt?
Hello @Flip
You have to enter the credit(s) onto the suppliers account, when you click save, you are given the option to refund it.
If you have a bank feed and already have a transaction on the bank relating to this, delete it to avoid doubling up the value
Hi, I think I had just spotted that option. I entered the refund manually and was trying to tag it but it seems I need to delete it and process these refunds for each credit note? Before I do that though I need to allocate some of the credits against an invoice, however, the credits are bigger than the invoice so is it easier to do these refunds then post a supplier payment to clear the invoice?
I still don’t get though why the credits do not get listed to apply the payment to as would happen with invoices, surely it would be far simpler and less messy?
Hello @Flip
Before I do that though I need to allocate some of the credits against an invoice, however, the credits are bigger than the invoice so is it easier to do these refunds then post a supplier payment to clear the invoice?
You can choose to Hold funds on the suppliers account.
You can then use the credit to pay off the invoices
Once all the allocations are done you can then refund the balance
Wow, can you make it more complicated?? I’ve done it my way, far quicker and lass messy. You make life far too complicated to deal with credit notes!
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So, how do I create a credit note for a customer? The screens you have only allow for the amount of the credit note being refunded to the customer. I want a credit note to sit on their account so that they can pay me the net amount of an invoice they owe and the credit we have issued. Before you say it, the credit does not relate directly to anything on the invoice. We are a property company and I have sent them an invoice for the next quarter’s rent and I need to send them a credit note for a rebate we have received from the Superior Landlord’s agent in relation to Service Charges.
The only way I can see to deal with this is to include a negative line on the invoice for the value of the credit I need to give.
Yes, Quickfile’s handling of credit notes is horrible - they should look at Xero to see how it should be done…
What you need to do is to credit an existing invoice, overtype the details to what you want, and then choose “Hold funds on client account” when you save it. When you have raised the next relevant invoice, you can apply the credit note to that invoice, which should then match the payment received.
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Hi, thanks, but no help whatsoever! Why do they think a credit note has to be tied to an invoice? A credit note can be a standalone document but they fail to see that! Total misunderstanding about accounting by computer nerds!
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Sorry, I realise now that this only works if the original invoice has been paid 
@Flip
I totally agree the way credit notes are handled on QF are ridiculously difficult!
@QFSteve is there any way of simplifying raising and allocating credit notes ?
Hello @Tudor
There are no changes for this in the pipeline as our focus is shifting to Making Tax Digital - Self Assessment
What, no multi-tasking???
Quite a popular annoyance, which you will probably have to put up with.
When a refund is received that requires a more complicated process to fix the situation i.e. a Credit Note I have created a bank account “Credit Notes/Refunds/Split Payment” where such payments are initally transferred; this keeps the current account all tagged.
The above step allows to review and rebalance the account back to zero as and when I am in the mood to deal those payments but always reviewed prior to running a VAT Return, an additional benefit is more often than not there are date differences between the actual credit note receipt date and when such a refund is received., in that case the received payment would stay in “Credit Notes/Refunds/Split Payment” and the Credit Note issued would be allocated to the same account which then reports the differing dates.
Postscript: If a refund is allocated directly lookup supplier invoices from tagging in banking and there are more than one line within the original purchase the refund divides the refund between all lines.
For instance, buy 2 oranges and an apple but you return the apple as rotten! The auto allocation facility refunds all three fruits partially rather showing that the apple had been returned!
Besides apples and oranges; here’s an earlier discussion about balancing payments on account with an electricity supplier Processing a refund of Payments on Account - #3 by alan_mcbrien
For God’s sake, don’t be fooled into spending too much time on MTD for SA. It’s already been postponed once, and the general opinion of accountants is that it will be canned after the next election.
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