Process purchase credits and refunds

From time to time it may be necessary to arrange for a Credit or Refund of purchased items. Credits & Refunds can be used for a variety of purposes and the system also allows partial Credit or Refund of Purchase Invoices.

To enter a Credit or Refund, navigate to Suppliers > Credits & Refunds and click “New”. The system will then ask whether you wish to create a Credit or a Refund and in this instance, a Credit will allow you to reverse a Purchase Invoice and a Refund will also adjust the bank account balance held in the system.

In this example, we will process a Refund, which will include both a Credit Note and Refund in one process.

After clicking “New Refund” the system will prompt you to choose the invoice to be refunded. Simply click the relevant invoice (or search using the advanced search & filter options) and click “Select Invoice” at the bottom of the screen.

The system will then ask you to confirm the following details:

  • Net value – Enter the value of the credit / refund;
  • VAT value – Enter the VAT associated with the credit / refund;
  • Credit qty – The quantity of items to be returned;
  • Return qty – The number of items to be returned into stock (if any).
  • Create refund – If you chose to Refund the items then this will be ticked, if you chose to Credit only then this will be unticked. You can choose to tick or untick as necessary.

Click “Save” and the system will either credit the Purchase Invoice, or will also lead you onto the Refund process. To process a Refund, the system will ask for the following information:

  • To – This is the account where you would like the Refund to appear;
  • From – This will be pre-populated with the relevant Supplier account, although can be changed if needed;
  • Accounting date – The date of Refund for accounting purposes;
  • Amount – This will be pre-populated from the previous process but can be overwritten if needed;
  • Currency – Will be pre-populated with the original invoice currency, but can be adjusted if the Refund was in a different currency;
  • Reference – Any relevant reference for the Refund;
  • Narrative – Any relevant information.

There is also a tick box that will prevent the Credit Note from being marked as paid.

After clicking “Create” the system will have saved the Refund.