How to clear Purchase Credit Notes

Hi,

In the past I received a refund from a supplier and I processed it in Sage as a supplier refund.

It shows on the supplier's account as a purchase credit note (PC). In this case £168

I then, some time later, received an invoice from the same supplier, in this case for £114.

When I look at the supplier list, this supplier's balance has been showing -54.

This isn't the true balance.

Could anyone tell me how I can clear the PC line from the supplier's account as it seems to be stuck there and messing up the balances?

Thanks in advance.

 

Comments
petersaxton's picture

Credit note?

petersaxton | | Permalink

A refund isn't a credit note. You usually need a refund and a credit note to match.

Supplier

johndon68 | | Permalink

So, does the supplier currently owe you £54?

John

Hi John,

D_Smith | | Permalink

Hi John,

Yes, it looks as though the supplier owes me £54, when in fact they don't.

 

 

petersaxton's picture

You have to ensure all the transactions are entered

petersaxton | | Permalink

What were the transactions? Why did you get a refund?

Old Greying Accountant's picture

As Peter says ...

Old Greying Acc... | | Permalink

... there are a number of ways of processing refunds, so we need to know the whole history so we can advise the best treatment.

However, it seems like you have entered a credit note, as a purchase refund would show as PR. Is the refund showing in your bank account? If not I think you need to go into supplier refunds/write off, select the account and refund credit note and match againt your credit note to clear. If it is in the bank, how did it get there? 

Post in haste....

D_Smith | | Permalink

....and make an ass of oneself.

I meant to ask how do I go about clearing a supplier refund (PR) from the supplier's account?

Thanks

 

petersaxton's picture

Delete?

petersaxton | | Permalink

Are you saying cancel your question and replace it with a different one?

Old Greying Accountant's picture

When you posted ...

Old Greying Acc... | | Permalink

... you should have matched against a credit note, or if you underpaid subsequent invoices then pick it up when matching invoices against the cheque amount, or you need to post an internal credit note to clear it out. Although if it were not a set off against an invoice or a refund of a credit note I would probably have posted via bank receipts and not supplier refunds! 

I'll do that in future.

D_Smith | | Permalink

Thanks,

in future, if I receive a (cash) refund from a supplier I'll receive it as a bank receipt rather than using the supplier refund method.

I've still got a Purchase Receipt (PR) line sitting in a supplier's account and I don't know how to get rid of it.

---------------

Apologies for my confusing thread - I'll asked for help before I was clear what I was asking for.

 

 

petersaxton's picture

No!!!

petersaxton | | Permalink

"in future, if I receive a (cash) refund from a supplier I'll receive it as a bank receipt rather than using the supplier refund method." Don't do that unless it's appropriate in the circumstances! If you don't receive a credit note you can post the refund directly to the bank but not if the credit note has been entered or there is an overpayment.

Old Greying Accountant's picture

As Peter says ...

Old Greying Acc... | | Permalink

.... you treat it depending on the particular circumstance. Do you not have an accountant? I would expect my clients to call with minor queries like this, I would rather spend 5 minutes on the phone now than sort out a pile of dung at the year end!

lindaluvdup's picture

I might have the wrong end of the stick but..

lindaluvdup | | Permalink

..it sounds to me that you do owe the £114 to your supplier for the later invoice and the earlier refund of £168 was made without your supplier issuing the correct paperwork, in this case a credit note.

If so, ask your supplier for a credit note to cover the £168 and allocate the refund against it. If they won't, I'd raise an internal (dummy) document showing the VAT breakdown, as it's important you deal with any VAT you need to repay if you reclaimed it against the original invoice(s) for £168. Post it and allocate the refund against it, file it with all the rest of your supplier invoices and credit notes, sending a copy to your supplier. Then you'll automatically have dealt with the VAT aspect, keeping out of trouble with HMRC.

Incidentally, I don't believe you can use bank receipt to get a refund from a supplier into your supplier ledger, you have to use supplier refund (or do it manually if you know how to).

Apart from all this, unless your accounts have very low value, £54 isn't an earth-shattering amount in the scheme of things but I understand you want your supplier ledger cleared up - your accountant will be able to advise you over the telephone.

Good luck!

Old Greying Accountant's picture

Exactly

Old Greying Acc... | | Permalink

lindaluvdup wrote:

Incidentally, I don't believe you can use bank receipt to get a refund from a supplier into your supplier ledger, you have to use supplier refund (or do it manually if you know how to).

If you get a refund with no paperwork, just post a bank receipt, with credits to VAT and the appropriate N/L expense, why hassle putting it through the purchase ledger? May be that's the difference between accountants and book-keepers, the former just want the end result right, the latter want that too, but following the text book procedure?

lindaluvdup's picture

Thanks for pointing that out

lindaluvdup | | Permalink

Old Greying Accountant wrote:

lindaluvdup wrote:

Incidentally, I don't believe you can use bank receipt to get a refund from a supplier into your supplier ledger, you have to use supplier refund (or do it manually if you know how to).

If you get a refund with no paperwork, just post a bank receipt, with credits to VAT and the appropriate N/L expense, why hassle putting it through the purchase ledger? May be that's the difference between accountants and book-keepers, the former just want the end result right, the latter want that too, but following the text book procedure?

....but I already knew.

This is why I hate posting on Accountingweb and, therefore, very rarely do. If one doesn't describe every single aspect to the tiniest detail it gives someone that considers themselves either better informed or better qualified the chance to display their superiority - I hope I've helped make you feel better about yourself and apologise for trying to help someone.

Old Greying Accountant's picture

Couldn't get up this morning ...

Old Greying Acc... | | Permalink

... all that howling at the full moon last night!

One wonders

ghewitt | | Permalink

lindaluvdup]</p> <p>[quote=Old Greying Accountant wrote:

If you get a refund with no paperwork, just post a bank receipt, with credits to VAT and the appropriate N/L expense, why hassle putting it through the purchase ledger? May be that's the difference between accountants and book-keepers, the former just want the end result right, the latter want that too, but following the text book procedure?

 

May be that's the difference between accountants and book-keepers, the former just want the end result right, the latter want that too, but following the text book procedure?

Do they want the end right at any expense? I often have to query the nominal that a 'learned' accountant wants to shove some annoying and inconvenient figure in to make the 'end result right' I have to explain that that is a control account and in this case should always show nil after transactions have taken place - or some such. I wonder if accountants had a hand in the building of the Titanic. Probably.

Add comment
Log in or register to post comments
Group: Sage 50 Accounts discussion group
An independent forum for Sage users to share ideas, tips and gripes