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
Create a sales credit note for the customer.
This clears the original customer invoice.
Create a zero-rated sales invoice for the customer.
Post the invoice to the suspense account 999.
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.