Customer Refunds (Using VAT Cash Accounting)

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

2. Click Credits.

The Batch Customer Credits appears.

3. Post a credit note with the same reference, net , tax and nominal code as the original invoice.

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

4. Post a 'dummy' invoice for the customer to the Mispostings nominal account with the same net and tax as the credit note.

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

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

Post a bank payment to the Mispostings account with the same net and tax reference as the original invoice.

When you save this payment, the balance of this bank account is corrected.

This records the refund without altering the total amount owed to you by your customer.

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. From the Bank Accounts window click Customer.

From the Customer Receipt window, enter the customer's account code. All this customer's outstanding invoices, credit notes and payments on account appear.

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 customer's refund in Sage Line 50.