What steps would you take on Sage if a customer had paid you in advance for example £1000 for a service that hasn't happened and so you need to credit them back.
I have raised a cheque but would you raise a credit note or put it on sage as customer refund?
At this point I am assuming that the £1000 paid by the customer has been posted as a payment on account
How I would deal with it would be:
Raise a sales invoice on the customer account for £1000 on VAT code T9 and NL code 9998 (Suspense), which can be matched off against the £1000 received from the customer
Then make the refund bank payment of £1000 on VAT code T9 and NL code 9998 (Suspense)
So the sales invoice of £1000 on suspense would be matched by the payment of £1000
To cut a long story short I have not long taken over a companies accounts on sage and ive been advised that we had issued a sales invoice for a service that was scheduled to happen, the customer paid us and the payment was banked but the service didn't happen as it was cancelled. We have agreed to raise a cheque for the full amount now to refund the payment.
What entries would I make in sage to show the payment coming out of the customers account and then out of our bank? This amount has already been reconciled months back!
Apologies for delay in getting back to you, been busy with client work
Based upon an invoice having been raised to the customer, I would raise a credit note for the value of the refund then in Customers use the option for Customer Refund for the payment to the customer
