Introduction
About Supplier Refunds
Supplier Refunds posts a Purchase Credit Journal which:
- Increases the selected Supplier Balance
- Credits the Supplier Control Account
- Debits the selected bank account
Creating Refunds with VAT
No VAT can be recorded on Purchase journals.
If you need to account for VAT on refunds, use:
Purchase Credit Journals vs Supplier Refunds
To make posting transactions more intuitive, we have split refunds from the Purchase Credit Journals. This allows refunds to be created from the Bank Reconciliation screen. Either option posts the same transaction type, but:
- Purchase Credit Journals can only be posted to Posting GL Accounts.
- Refunds can only be posted against a bank account.
See:
Create a Supplier Refund
Go to Purchases > Actions > Purchase Adjustment > Supplier Refund.
Alternatively, go to the Supplier bank. Under the More Actions dropdown, select Create Supplier Refund.
How to Post a Refund
In the Refund screen, complete the following:
-
Supplier A/C: Select the supplier from the dropdown.
- Exch. Rate: If you select a foreign currency Supplier and / or Bank Account, the latest rate will display. However, you can override it if necessary. Currency triangulation is not supported. See the next section for more details on FX transactions.
- Refund Date: This defaults to today's date, but you can override it.
- External Reference: Enter a mandatory journal reference number. The refund transaction will not post if it is missing. This reference is used during the bank reconciliation process of the bank reconciliation.
- Bank: Select the Bank Account from the list. If you need to post an adjustment to a GL Account, use Purchase Debit or Credit Journals.
- Dimension Tag: If required, select a Dimension Tag.
- Description: Enter a Description for the journal. This field is mandatory.
- Refund Amount: Enter the refund amount in the supplier currency.
- BC Amount: This is calculated automatically for foreign currency Supplier or Bank Accounts.
To finish, do one of the following:
- To post the Refund without allocation click Process.
- To post the Refund and allocate it, click Process and Allocate. This will open the allocation screen for the selected supplier. From there you can allocate the newly posted journal as required. See Purchase Payments & Allocations for more details.
- To close the screen without posting any transaction, click Close.
Foreign Currency Refunds
Supported FX Refunds
The following scenarios are supported:
- Supplier in the same foreign currency as the bank
- Supplier base currency with the bank in foreign currency
- Bank in base currency with Supplier foreign currency
Unsupported FX Refunds
You cannot do the following:
- Process foreign currency triangulation in refunds, where the Supplier and the bank are in different foreign currencies. Instead, process the refund in two stages:
- Process a purchase credit journal.
- Process a bank debit or credit journal.
- Post refunds from the Bank Reconciliation screen if the Supplier is not in the same currency as the Bank Account as the transaction may carry bank charges. You will receive an error message if you try.
- Match a single bank transaction to multiple transactions using the Bank Reconciliation screen. You need to manually match them in the Bank Reconciliation screen.
To create Foreign Currency refunds:
- Complete the refund details as described in the previous section.
- Update the exchange rate if required. In the Refund screen, the BC Amount field will be calculated automatically.
- Process as described above.
