Purchase invoice refunds
If a supplier sends you a refund for an invoice you’ve already paid, you need to record this. You can refund the payment, then issue a credit note to cancel the invoice.
This article is for the standard VAT scheme only. If you use a different VAT scheme, or to help you correct other transactions, we’ve put together a step-by-step guide.
- 1. Expenses > Purchase Invoices > select the invoice you received the refund for.
- 2. Record Payment > enter the following information:
|Amount Paid *||Enter the amount of the refund as a negative value. This can be for all or part of the invoice.
You must enter a negative value. If you enter a positive value, it’s recorded as a payment against the invoice.
|Date *||Enter the date of the refund.|
|Paid From *||Choose the bank account the refund was paid to.|
|Ref/Chq Number||Enter a reference, for example Refund, or a cheque number.|
* These details are compulsory.
- 3. Save > Manage Invoice > Create Credit Note.
- 4. Credit Date > ensure this is the date of the refund.
- 5. Check the information on the credit note is the same as the original invoice.
If the refund is for part of the invoice value > change the unit price and check the total value of the credit note is for the same value as the refund.
- 6. Click Save.
You’ve successfully recorded the refund.