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Customer refunds

Created on  | Last modified on 

Summary

How to enter the refund and match it to the original payment or credit note in Sage Accounting.

Description

You may need to record a refund paid to a customer. This could be because the customer overpaid or when they have returned some goods.

Resolution

How this works

  • If you import bank transactions from a bank feed or 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 to the payment on account
  • If you have received a refund for a cash sale where you don't have an invoice or credit note, use the Refund for sales option. Read more about entering money out as a cash refund
  • If you use the 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.
  1. Enter the credit note first.
    Read more about sales credit notes.
  2. From your bank feed, find the refund and choose Match. Then 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 customer receipt:
    • Discard the transaction from your bank feed
    • Enter the refund manually
Read more about processing 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.

  1. From Banking, open the correct bank account.
  2. Select New Entry, then Purchase / Payment.
  3. Select the Customer Refund tab. Enter the customer, bank account, payment method, date and amount of the refund. If required, you can also enter a reference.
  4. Select the check box next to the credit note or payment on account that the refund is for. You cannot refund part of a payment on account or credit note from here.
  5. Save the refund.
  6. To print remittance advice for your refund, select Print Remittance from the Save drop-down list. The remittance advice opens in a new window. You can print or save it from here.

To email a remittance advice for your refund, select Email Remittance from the Save drop-down list. Enter the email address you want to send the PDF attachment to, then select Send.

To save the refund without a remittance, select Save.

To add another refund without first creating a remittance advice, select Add Another from the Save drop-down list.

Refund a credit note >

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.

Read about how to match payments on account or credit notes to invoices. 

  1. Select Sales, then Sales Credit Notes.
  2. Select the correct credit note.
  3. Select Record Refund, then check or enter the amount, date, bank account and payment method of the refund. You can also enter a reference.
  4. Select Refund.

Check future dated transactions >

If you need to refund a payment on account:
  1. Fom Banking, select New, then Purchase/Payment.
  2. Select Customer Refund.
  3. Choose the custoemr you're refunding.
  4. The details of any payments on account will appear in the activity. Tick the checkbox and enter all the other information about the refund. The amount of the refund should match the payment on account.
  5. Select Save.

 

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