The Postings Made on Invoice Refunds

Sales Refunds

$image\bullet.gif$ A sales credit note is posted to the customerÆs account with the same reference as the refunded invoice. The details field contains Sales Refund and the tax and sales nominal account codes will be the same as the original invoice.

$image\bullet.gif$ A dummy sales invoice is posted to the customerÆs account with the same reference as the refunded invoice. The details field contains Sales Refund, the tax code will be T9 and the nominal code will be that of the mispostings control account.

$image\bullet.gif$ The invoice is allocated in full to the credit note described above.

$image\bullet.gif$ The accountÆs turnover is reduced by the net amount of the new credit note posting, excluding any VAT.

$image\bullet.gif$ The accountÆs balance is not affected, and neither is the amount paid this period total.

$image\bullet.gif$ The nominal account for sales, as used for the refunded invoice, is reduced by the net amount of the refund, excluding any VAT (a debit posting).

$image\bullet.gif$ If VAT was included in the sale, the amount of VAT you need to pay on sales, as shown in the Sales VAT control account, is reduced by the VAT amount of the refunded invoice (a debit posting).

$image\bullet.gif$ The money in the bank control account is increased with the total value of the new invoice, and reduced by the total amount of the refund, resulting in a zero effect.

$image\bullet.gif$ The total amount owed to you by your customers, as show in the debtors control account balance in the nominal ledger, remains unaffected.

Purchase Refunds

$image\bullet.gif$ A credit note is posted to the supplierÆs account with the same reference as the refunded invoice. The details field contains Purchase Refund and the tax and purchase nominal account codes will be the same as the original invoice.

$image\bullet.gif$ A dummy invoice is posted to the supplierÆs account with the same reference as the refunded invoice. The details field contains Purchase Refund, the tax code will be T9 and the nominal code will be that of the mispostings control account.

$image\bullet.gif$ The invoice is allocated in full to the credit note described above.

$image\bullet.gif$ The accountÆs turnover is reduced by the net amount of the new credit note posting, excluding any VAT.

$image\bullet.gif$ The accountÆs balance is not affected, nor is the amount paid this period total.

$image\bullet.gif$ The nominal account for purchases, as used for the refunded invoice, is reduced by the net amount of the refund, excluding any VAT (a credit posting).

$image\bullet.gif$ The amount of money in the bank control account chosen is increased by the gross amount of the refunded invoice, including any VAT (a debit posting).

$image\bullet.gif$ The balance of the mispostings account is reduced by the value of the new invoice and increased by the total amount of the refund resulting in a zero effect.

$image\bullet.gif$ The total amount you owe to your suppliers, as shown in the creditors control account balance in the nominal ledger, remains unaffected.