Summary
How to record a refund received from a supplier in Sage Accounting.
Resolution
How this works
- If you import bank transactions from a bank feed or from your bank statement, you can only match the refund to an existing credit note
- If you have already received the credit note, then enter the refund and match it to the credit note
- If the refund is to repay an overpayment saved as a payment on account, enter the refund and match it to the payment on account
- If you have received a refund for a cash purchase where you don't have an invoice or credit note, use the Refund for a Purchase option. Read more on how to enter money in as a cash refund
- If you use the VAT Cash Accounting scheme, the refund shows on your next VAT return
Match a refund from a bank feed
If you use bank feeds, you can only match the refund in your bank feed to the credit note it's paying.
- Enter the credit note first. Read how to create purchase credit notes.
- From your bank feed, find the refund and choose Match.
- Select or search for the relevant credit note. Select the check box to match the credit note and create a refund.
- Discard the transaction from your bank feed
- Enter the refund manually
If you need help with bank feeds, read about how to process incoming bank transactions.
Enter the refund and match it to a payment or credit note
Follow these steps to refund a payment or credit note that you have already received.
- From Banking, open the correct bank account.
- Select New Entry, then Sale/Receipt.
- Select the Supplier Refund tab. Enter the supplier, bank account, payment method, date and amount of the refund. If required, you can also enter a reference.
- Select the check box next to the credit note or payment on account the supplier refund is for. You can't refund part of a payment on account or credit note from here.
- Save the refund.
Partial refunds
If you have only received part of the value of an invoice
- Match or allocate any payment on account or credit note to the correct invoice where this leaves an outstanding value on the invoice
- Open the invoice and refund the remaining invoice value
Read about allocating existing transactions.
Refund a credit note directly
Use this method to refund the entire value of a single credit note.
You can’t refund part of a credit note. First, allocate the credit note to the correct invoice, then refund the outstanding value.
If you need help allocating transactions, read more about allocating existing transactions.
- Select Purchases, then Purchase Credit Notes.
- Select the correct credit note.
- Select Record Refund, then check or enter the amount, date, bank account and payment method of the refund. If required, you can also enter a reference.
- Select Refund.