How to enter supplier refund?

You have entered an invoice for a supplier for £100

You pay the supplier £100, so you enter a payment of £100. This clears the supplier's account.

You have to refund the supplier £100. Negative payments can not be processed in Sage Accounts Production.

To create a refund a purchase credit note will have to enter to clear the invoice that was issued for £100

The balance on the supplier's account will now be £-100 

A zero-rated invoice for £100 will now be issued to clear the payment and the balance for the supplier will now be zero. This invoice will also debit the suspense account 999

To create a refund for the supplier:

To clear the invoice posted to the supplier a purchase Credit Note will have to be issued.

Dr.Supplier £100

Cr.Purchases £100

An Invoice and Receipt will now have to be issued to Refund the Supplier and Clear the Bank Account

There are 2 steps involved in this process. 

1. To create a Zero Rated Purchase Invoice to the supplier
   
   Debit the Suspense Account – 999
   This will create the effect of refunding the supplier
   
   
2. To raise a Receipt 
   This will clear the amount form the Bank Account and also clear the Suspense Account