another question which I suspect has a simple answer.
Sometime ago I made a purchase from a one-off supplier. I have since returned the item for a refund and my bank account has been creditted. But how do I put this in Sage. So far I have entered supplier credit notes and now the supplier balance is negative. When I try to 'pay' the credit note in the bank module it is not available after choosing supplier presumably because it will only allow invoices to be paid, the credit notes being deducted from future invoices.
With no future invoices to be received what is the best way to do this.
I did read this thread which I didn't fully understand
1. On the supplier account raise an invoice for the gross amount with a T9 tax code to the suspense nominal account. 2. Go into Bank -> Supplier, select the supplier and pay both the invoice and the credit note. This will clear the supplier account. 3. Enter a bank receipt for the gross amount with a T9 tax code to the suspense nominal account.
The above applies if you are on Standard VAT Accounting, if you are on VAT Cash Accounting, the transactions need to be entered with the appropriate tax code, net and tax amounts.
Did you enter the original invoice? If not, then there wasn't any point in entering a credit note really.
Personally I would've been inclined just to enter the original payment as a bank payment and then the refund as a bank receipt, with appropriate VAT codes etc.
no I didn't enter the original invoice as I treated the original purchase as an employee expense so the 'original invoice' was entered into Sage as if the employee was the supllier.
I have the credit notes entered now and would like to use them if I can. I'm guessing journals won't work as they don't affect supplier accountbalnaces, just nominal codes?
I haven't officially received a credit note, although I have received a refund to my credit card account. Ideally I would like to log the refund against the supplier account. I have entered credit notes (incorrectly??) so now the supplier has a negative balance. However, as I will no longer receive any invoices from said supplier, there will be no charges to be reduced so I would like to acknowledge/pay the credit notes by linking them to a refund on the credit card account.
Is that possible with supplier credit notes?
Are refunds and credit notes technically different things?
Ok, technically speaking credit notes and refunds are different things yes. Credit notes are usually used to reduce the amount paid on an invoice for one reason or another, so you record both invoice and credit note on the supplier account and then pay one off against the other (i.e. pay a reduced amount).
If you have the version of Sage that will allow you to do a supplier refund then you need to go to the supplier module, click on supplier refund in the left hand pane. In the box that comes up choose the supplier from the drop down box and choose the credit card account as the bank account. Enter the amount of the refund (should match the credit notes) and make sure you enter the correct tax codes (T9 if you are on standard VAT) or (T1 (or to match the original payment) if you are on cash accounting.) Save this and then you need to go into the supplier account via the bank module and pay these off against each other. Doesn't matter if you select the credit card account or the bank account as the net effect will be zero anyway.
HTH Pauline
-- Edited by Stardoe on Monday 29th of November 2010 10:41:08 PM
-- Edited by Stardoe on Monday 29th of November 2010 10:42:27 PM
