I have entered a credit note for a supplier and then the supplier has sent a refund.
For this example, we are going to assume the credit note is 120 (100 + 20 tax), then we would propose the following:
- On the supplier, account raise a purchase invoice for 120 with the same tax code as the Credit Note and post it to the suspense nominal code (9998).
- Go to Bank -> Allocate Pending Payment and Credit Notes to Invoice, select the supplier and both the invoice and the credit note will appear. Enter the full value against each line item.
- Go to Bank -> Receipt and enter a receipt for 120 with the same tax code as the Credit Note and post it to the suspense nominal code (9998).
Once you have done the above, the supplier account balance will be zero and the money will show coming into the bank account.