To Record a Refund Received from a Supplier Invoice (VAT Cash Accounting Scheme)
1. Post a batch supplier credit note with the same reference 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.
The balance of the supplierÆs account now increases by the value of the invoice that reverses the effect of the credit note.
3. Allocate the credit note you have just created to the supplier invoice you have just created.
The allocation of the credit note to the supplier invoice has the effect of paying off the outstanding supplier invoice with the credit note. You now need to correct your bank balance.
4. Post a bank receipt to the Mispostings nominal account.
This increases your bank balance by the amount of the refund.
You have now recorded the refund of the money paid against the supplierÆs account using the VAT Cash Accounting method.
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