Delete a supplier refund

This explains what to do when to delete a supplier refund. .

Cash Basis scheme

You cannot delete a refund that is included on a VAT return. Instead create a reverse transaction to clear the value from the bank account, supplier accounts and VAT return.

How this works

A refund must always be allocated to a credit note or payment on account. When you delete the refund, the credit note or payment on account becomes outstanding ready to allocate again.

Reconciled refunds

When you delete a refund included on a bank reconciliation

The deleted refund shows on your bank reconciliation with a Removed from reconciliation label in the Corrected Transaction column.
The Starting Balance of your next bank reconciliation updates.

The Starting Balance is always the total value of all reconciled transactions, up to the statement date. Deleted transactions are not included in this balance.

Delete a refund

From Banking, select the relevant bank account.
From the Activity tab, select the tick box to the left the transactions you want to delete.

A toolbar now appears above the list.
From the toolbar, select the Delete icon.

Once deleted

The credit note or payment on account shows as outstanding and can be refunded again where required.
If it was reconciled, the refund is removed from teh reconciliation. The Starting Balance on your next reconciliation increases as this refund is removed.
The deleted transaction shows on the audit trail with a line through.

Reverse a refund

If you use Cash Basis scheme, and the refund is included on a VAT return, you cannot edit or delete it.

Instead enter the reverse transaction to clear the value from your customersupplier account, bank account and to update the VAT return.

Reverse a refund allocated to a credit note

As you cannot delete or unallocate the refund, you must reverse the value of both the credit note and refund. To do this create a new invoice and a new payment with the same date, bank account, amount and ledger account.

This removes the refund from you bank account balance, updates the balance on your customersupplier account and updates your VAT return.

Create a new invoice with the same date, ledger account and amount as the credit note. This reverses the credit note.
1. From Purchases, choose Purchase Invoices , then New Purchase Invoice.
2. Enter the details identical to the original credit note, and Save.
Pay the invoice. This reverses the refund.
1. Once the invoice is saved, Choose Record Payment. Make sure you select the same bank account.
Enter a new credit note and refund with the correct details.

Once saved

The new paymentreceipt shows on you bank account, cancelling out the value of the refund. We recommend that you reconcile the new paymentreceipt straight away, to make sure you balances are correct before your next bank reconciliation.
The invoice and the new paymentreceipt show on the customersupplier account, cancelling out the value of the refund and credit note.
The new paymentreceipt is reported on your next VAT return, cancelling out the previous refund.
Enter a new credit note adn refund with the correct details.

Reverse a refund allocated to a payment on account

As you cannot delete or unallocate the refund, you must reverse the value of the refund. To do this, create a new paymentreceipt with the same date, bank account and amount. This updates the balance of the bank account, the balance of the customersupplier account and the VAT return.

From Banking, open the correct bank account.
Select New Entry, then Purchase / Payment Sales/ Receipt.
Select the Supplier Payment Customer Receipt tab. Enter the customersupplier, bank account, payment method, date, amount and VAT rate. This must be the same details as the original refund.
Choose Save and select Yes to save as a payment on account.