Edit a supplier refund

This explains how to edit a customer refund. A refund must always be fully allocated to either a credit note or payment on account.

How this works

Refunds must always be fully allocated to either a credit note or to a payment an account.

Reconciled refunds

These are refunds included on a bank reconciliation. On your bank activity, they have a tick in the reconciled column.

You cannot change the refund amount. Delete and re-enter the refund instead.

An edited refund stays reconciled, when you change the Reference, Method, Ledger Account, and Date, as long as the date stays within the reconciled period. For example, if the end date of the reconciliation is 31 July, and you change it to any date up to 31 July.

An edited refund becomes unreconciled when you change bank account, or date to a date is later than the end of date of the reconciliation. For example, if the end date of the reconciliation is 31 July, and you change the date to 5 August. For these transactions

We remove the edited transaction from the completed reconciliation. To tell you this, we add a Removed from reconciliation label to the Corrected Transaction column.
We update the starting balance of your next reconciliation, as we have removed a transaction.
We unreconcile and update the transaction so it is ready for you to check and reconcile again.
On the bank reconciliation page, we show the edited transaction with a Corrected label. This tells you that you edited this since it was reconciled.

Refunds on a VAT return - Cash Basis scheme.

If you are on the Cash Basis scheme and the refund is included on a VAT return, you cannot edit or delete it. You must reverse the refund instead.

Edit a refund

From Banking, open the relevant bank account.
From the Bank Activity tab, select the row to open the refund.
Change the bank account, method, date, and reference, as required.
Save your changes

Change the amount

When you change the amount, the refund must exactly match the total of the transactions it is allocated to.

Update the amount.
Remove the tick from the transactions the refund is allocated to.

To allocate to a different transaction, select Outstanding from the Display drop-down list. This show all outstanding payments on account and credit notes.
Select the transactions to allocate.
The total of the selected transactions must match the total amount of the refund. You can see this when the Left to Allocate box is zero.
Save.

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.