Supplier Refunds (Standard VAT Accounting)

Supplier Refunds (Using Standard VAT)

Note: You can also use the Write Off, Refunds and Returns wizard to process a refund for any supplier invoices. To do this, choose Tools from the menu bar and then click Write Off, Refund, Return. Follow the step-by-step instructions to complete the refund.

1. Post a batch supplier credit note with the same reference, net, tax and nominal code as the original invoice. The balance of the supplierÆs account decreases by the value of the credit note.

2. Post a batch supplier invoice to the Mispostings nominal account with a tax code of T9. The balance of the supplierÆs account now increases by the value of the batch supplier invoice which reverses the effect of the credit note.

3. Post a bank receipt to the Mispostings nominal account with a tax code of T9. You have increased your bank balance by the refund amount. You should now use the credit note to æpay offÆ the outstanding supplier invoice. This is known as allocating the credit note to the supplier invoice.

4. Allocate the batch supplier invoice to the batch supplier credit note.