Record a supplier refund

Suppliers can refund you for overpayments, returned goods, or corrected invoices.

How you record the refund depends on whether you have a credit note, a payment on account, or a bank feed transaction.

Use the method that matches how the refund appears in your records.

Match a supplier refund from a bank feed

If you use bank feeds, you must match the refund to an existing credit note or payment.

1. Create the supplier credit note first.
2. Open Banking, then select the relevant bank account.
3. Find the refund transaction and select Match.
4. Search for and select the matching credit note.
5. Select the checkbox, then confirm the match.

Sage Accounting creates the refund automatically.

Enter a supplier refund manually

Use this method if the refund doesn’t come from a bank feed.

1. Open Banking, then select the correct bank account.
2. Select New Entry, then Sale/Receipt.
3. Select the Supplier refund tab.
4. Enter the supplier, date, amount, bank account, and payment method.
5. Select the credit note or payment on account the refund relates to.
6. Save the refund.

You can’t partially refund a credit note or payment on account using this method.

Refund a payment on account partially

To refund part of a payment on account, you must adjust the remaining balance first.

For example: You have a 100 payment on account and want to refund 80.

1. Create a quick entry purchase invoice for the remaining amount, for example 20.
2. Allocate the invoice to the payment on account.
3. Refund the remaining balance, for example 80.
4. Unallocate and delete the quick entry invoice.

This leaves the correct amount as a payment on account.

Refund a credit note directly

Use this method to refund the full value of a single credit note.

You can’t refund part of a credit note.

1. Select Purchases, then Purchase credit notes.
2. Open the relevant credit note.
3. Select Record refund.
4. Confirm the amount, date, bank account, and payment method.
5. Select Refund.

• Create purchase credit notes
• Process incoming bank transactions
• Edit a supplier refund
• Delete a supplier refund