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Receiving credit for a bill which has already been paid in full

Question asked by hilary boon 3 years ago

Sorry if this seems a basic question, but I just want to know the best way to handle the following situation. I have paid a solicitors bill in full two months ago. He was unable to do the work so has paid the amount back in full. I need to know how i explain this payment on my bank rec as my account already shows the bill being paid 2 months ago. Also there is the issue of VAT which will need to addressed. I am just not sure the best way to do this - Thanks

2 Replies

Hi Hilary,

Not a problem.

In this case, I would suggest you do a refund by going into Money > Bank accounts, choose the relevant bank account and click on Money in as shown in: https://s3-eu-west-1.amazonaws.com/uploads-eu.hipchat.com/36185/5036251/A8EVP7cpw90xxjs/upload.png

After this, fill in the required fields and click on explain money in, on the next page, click on the Refund tab, again, fill in the required fields and hit the 'add new transaction' button, please see: https://s3-eu-west-1.amazonaws.com/uploads-eu.hipchat.com/36185/5036251/AKj1QFcRyl19dtW/upload.png

With regards to VAT, you would just ensure that the refund transaction is included in the next VAT return.

Thanks, Tommy

Thanks Tommy, knew there would be a simple solution, just hadn't noticed that "refund" button before. Many thanks for speedy response.

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