You can use Business Finance Assistant to record receipt of a supplier credit note, for example, if you receive a partial or full refund in respect of a purchase previously made; to do this:
- Go to ‘Suppliers’ from the main menu.
- Select the correct supplier by clicking on the supplier name.
- Select the ‘New Action’ button.
- Select ‘New Supplier Credit Memo’.
- Populate the details of the credit memo.
- Click ‘Expenses’ and then ‘+ Add an Expense.’
- Select the correct ‘accounting account’
- Note (1): An accounting account is similar to adding a ‘category’; you should search & select an appropriate option for the good or service being refunded
- Note (2): Which accounting account you select has no impact on the VAT treatment of the credit memo
- Select ‘Done’.
You'll need to record the credit memo and match it to an incoming transaction to make sure that your VAT return is accurate. To do this:
- Go to ‘Bank Transactions’
- Select the account where the refund was paid into
- Find the incoming refund payment
- Select 'Split/Attach'
- Press 'Attach/Match Document'
- Select 'Supplier Credit Memo'
- Select the correct credit memo
- Select ‘Confirm selection’
- The credit memo is now linked to the refund transaction
Alternatively, you can categorise the supplier refund using the same 'expense' category that you used for the initial purchase. When categorising an incoming refund transaction, the 'expense' categories change to 'refund' categories in the drop-down category menu on the bank transactions page: