how do I refund unallocated cash from a customer?
Question asked by Rachael POTTER 3 years ago
a customer has paid me twice for the same invoice (obviously he needs a beeter accounting system lol) and now he has asked for the second payment to be returned to him. The first payment was allocated to the sales invoice and the second is still on his account as unallocated cash.
How do I process this back to him? I cannot use REFUND through BANK/MONEYOUT as this would create a debit posting to my nominal ledger.
I don't want to delete the cash and reinput it to a suspense a/c and repay it from there as I would like to have the tracability of it being on his sales ledger account. The only way I can think of doing it is to create a sales invoice with the nominal code BANK and exclude it from my VAT return and then allocate 2nd payment received to it, but that feels so wrong there must be a better way!