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Customer refunds

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Summary

How to record customer refunds in Sage Accounts Production.

Description

To process a refund to a customer, you can use a credit note, a zero-rated invoice, and a payment.

Resolution

  1. Create a sales credit note for the customer.
    This clears the original customer invoice.
  2. Create a zero-rated sales invoice for the customer.
    Post the invoice to the suspense account 999.
  3. Raise a cheque payment.
    This clears the bank account entry and the suspense account.

EXAMPLE:

You post and pay a customer invoice for £100. Later, you refund £100 by creating a credit note, a zero-rated invoice to the suspense account 999, and a payment. This clears all balances.