Edit a supplier refund

How this works

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

Reconciled refunds

These are refunds included in 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 31st July, and you change it to any date up to 31st July.

An edited refund becomes unreconciled when you change the bank account, or date to a date that is later than the end date of the reconciliation. For example, if the end date of the reconciliation is 31st July, and you change the date to 5th 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 - VAT Cash Accounting scheme.

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

Edit a refund

1. From Banking, open the relevant bank account.
2. From the Bank Activity tab, select the row to open the refund.
3. Change the bank account, method, date, and reference, as required.
4. 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.

1. Update the amount.
2. Remove the tick from the transactions the refund is allocated to.
3. To allocate to a different transaction, select Outstanding from the Display drop-down list. This shows all outstanding payments on account and credit notes.
4. Select the transactions to allocate.
5. 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.
6. Save.

Reverse a refund

If you use the VAT Cash Accounting scheme, and the refund is included on a VAT return, you can't edit or delete it.

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

Reverse a refund allocated to a credit note

As you can't delete or unallocate the refund, you must reverse the value of both the credit note and the 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 your bank account balance, updates the balance on your supplier account and updates your VAT return:

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

Once saved:

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

Reverse a refund allocated to a payment on account

As you can't delete or unallocate the refund, you must reverse the value of the refund. To do this, create a new payment with the same date, bank account and amount. This updates the balance of the bank account, the balance of the supplier account and the VAT return.

1. From Banking, open the correct bank account.
2. Select New Entry, then Purchase / Payment.
3. Select the Supplier Payment tab. Enter the supplier, bank account, payment method, date, amount and VAT rate. This must be the same details as the original refund.

4. Choose Save and select Yes to save as a payment on account.

Once saved

• The new payment shows on the bank account, cancelling out the value of the refund. We recommend that you reconcile the new payment straight away, to make sure your balances are correct before your next bank reconciliation
• The new payment is reported on your next VAT return, cancelling out the previous refund