Supplier Refunds (VAT Cash Accounting)

Supplier Refunds (Using VAT Cash Accounting)

1. From the main Sage Line 50 desktop, click Suppliers.

2. Click Credit.

The Batch Supplier Credits window appears.

3. Create a 'dummy' credit note for the supplier by posting with the same reference, net, tax and nominal code as the original invoice.

Posting this credit note decreases the balance on the supplier's record by the value of the refund and you should now post a batch invoice to correct this balance.

4. Click Invoices from the Suppliers window, then post a 'dummy' invoice for the supplier with the same net and tax as the original invoice using the Mispostings nominal code.

When you save this invoice, the balance of the supplier's account is corrected.

5. Select the bank account you require from the Bank Accounts window then click Receipts.

Post a bank receipt to Mispostings account with the same net and tax as the credit note.

When you save this receipt, the balance of this bank account is corrected. This records the refund without altering the total amount you owe your supplier.

You should now "pay off" the credit note you have just entered against the invoice you have just created. This is known as allocating the credit note to the invoice.

6. Click Supplier from the Bank Accounts window.

The Bank Supplier window appears.

7. From the Bank Supplier window, enter the supplier's account code.

All of the selected supplier's outstanding invoices, credit notes and payments on account appear.

8. Highlight the credit note you have just entered, then click Pay in Full.

Highlight the invoice you have just entered, then click Pay in Full.

To allocate these transactions, click Save.

You have now recorded the refund from your supplier.