Allocating a refund to a credit note

Question asked by Jeanie Stevens 9 years ago

Hi,

I have a supplier's credit note sitting on our system. They have recently refunded us this amount, as we are not likely to use them again. I have entered this as a journal, showing a credit into the bank account and a debit into the trade creditors account. The supplier's account is now showing as zero balance in the summary, but when I go to their statement, it still shows as a credit balance. I can't see a way of allocating the journal against the credit note. When I go into the Aged Creditors' Report, the credit still shows on the system, and the journal shows as a separate line after the total. I don't want to just void the credit off the system, as this won't show the income into the bank account. Suggestions?

Thanks,

Jade

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5 Replies

Hi David

I'm afraid what you're trying to achieve isn't currently possible. Clear Books (rightly or wrongly, probably the latter) only allow credit notes to be offset against outstanding invoices/bills.

If you've been refunded the cash I would:

  1. Delete the credit note
  2. Delete the journal
  3. Money > Manage Money > Money In
  4. Explain it as a refund from X supplier (shown below)

file

With the amount of times this crops up i'd be very surprised if the developers aren't already working on it so hopefully the workaround won't last forever.

Best answer
9 years ago

I have been meaning to ask this question for a while. The problem I see with this workaround is that it doesn't cancel original invoice (which in my case has already been entered on a VAT return) so a credit note is required to correct the posting of the invoice and the VAT thereon ... or am I missing something?

9 years ago

Hi Lisa

If payment has already changed hands to clear off the invoice/bill then the 'refund' option is what's needed. However, if said invoice/bill is still open then yes, a credit note will do the job.

9 years ago

Thanks, Kevin. On further investigation, this is partly an issue with the supplier's credit notes, which essentially combine the credit for an item returned with a new purchase. Where the new purchase was for a lower value, a refund was paid. The original invoice was paid in full, posted and paid on the system, then the credit note was posted and I'm left trying to match that to the refund amount. I now realise that I have both on the VAT return for that quarter. As I can no longer delete these I guess I shall have to post a correcting journal.

9 years ago

I'm not sure a journal will work in all honesty, you need to find a way to clear off the credit note.

How about creating a dummy bill to assign the credit note to then process the refund as above?

9 years ago

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