You can use Business Finance Assistant to record receipt of a supplier credit note, for example, if you receive a partial or full refund in respect of a purchase previously made; to do this:
- Go to ‘Suppliers’ from the main menu
- Select the correct supplier by clicking on the supplier name
- Select the ‘New Action’ button
- Select ‘New Supplier Credit Memo’
- Populate the details of the credit memo and please ensure that the date of the credit memo precedes the date of the transaction
- Click ‘Expenses’ and then ‘+ Add an Expense’
- Select the correct ‘accounting account’
- Note (1): An accounting account is similar to adding a ‘category’; you should search & select an appropriate option for the good or service being refunded
- Note (2): Which accounting account you select has no impact on the VAT treatment of the credit memo
- Select ‘Done’
You must make a record of the credit note and link it to an incoming transaction to ensure that your VAT return is accurate, to do this:
- Go to ‘Bank Transactions’
- Select the account where the refund was paid into
- Find the incoming refund payment
- Select 'Split/Attach'
- Press 'Attach Document'
- Select 'Supplier Credit Memo'
- Select the correct credit memo
- Select ‘Confirm selection’
- The credit memo is now linked to the refund transaction