Supplier refunds

How to record a refund received from a supplier in Sage Accounting.

Description

If you import bank transactions from a bank feed or statement, match the refund to an existing credit note
You've received the credit note, so enter the refund and match it to the credit note
To repay an overpayment saved as a payment on account, enter the refund and match it to the payment on account. Find out more about Supplier payments and payments on account
If you've received a refund for a purchase and you don't have an invoice or credit note, use Refund for a Purchase. Find out to Enter money in as a cash refund

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. Find out 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.

If the refund is to refund a supplier payment,

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.

When you need to refund part of a payment on account, follow these steps.

Example: You have a £100 payment on account and you want to refund £80, leaving £20 as a payment on account.

Create a Quick Entry invoice for the remaining amount after the refund. £20 in this example.
Allocate the Quick Entry to the payment on account.
Refund the remaining amount of the payment on account. £80 in this example.
Unallocate the Query Entry invoice, then delete it. In this example that'll leave a £20 payment on account.

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 with allocating transactions, read our Allocating existing transactions article.

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.