Tagging refund from supplier

In the previous VAT period we were over invoiced and over paid a supplier who immediately issued us with credit notes then eventually refunded us. Th excess funds are held as unallocated funds under the supplier account. We seem unable to tag the refund credits to to the account. The drop down menu that appears only has the original invoices not the credit notes and tagging seems to result in the credit note being duplicated.

What happens if you log refund amount as receipt in main bank and then tag it as refund from supplier, pick supplier name and invoice against refund came, does it allocate refund against that invoice and reduces actual expense along with vat adjustment?

  • Go to the supplier’s account and click ‘View >> All Payments’:

  • Select the payment which shows the amount that remains unallocated and click ‘View Details’:

  • On the next screen, click ‘Refund Balance’ to refund the unallocated balance to the bank:

  • Finally, if you’re using bank feeds or upload your bank statements, make sure to delete the duplicate untagged refund on the bank account.
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Its a nightmare. A second credit note is created the first one having registered the credit against the invoice as a payment but the invoice itself is not altered so I’m not sure how that effects the VAT return. The additional refund created by the second credit note is added to the total of funds due by the supplier (overpayments by us). However when I delete one of the credit notes it removes the credit on the invoice and creates an outstanding leaving the funds held on the account intact. For the invoice and credit note issued in this VAT period I tried to pay the outstanding on the invoice against these funds but while the invoice has no entries for the credit note it bears the notation that a credit note has been raised for the balance (refunded) and the pay button needed to repay the balance is not shown. While I can remove all credit notes in this VAT period and start from scratch (I hope) I cannot do so with the credit note in the last VAT period.

Try create a dummy supplier and dummy invoice and then credit note. Its working fine at my end

Thanks that has worked.well.