How to process a supplier refund or credit note?
When a supplier owes you money, there are multiple options for how to record this in ExpensePlus, depending on if they refund your payment or if they issue you a credit note to reduce a future payment.
In this article:
If the supplier refunds a payment
When a supplier owes you money and they repay you or make a partial repayment into your bank account, there are two ways to record this in ExpensePlus:
a) you can enter an 'Invoice to Pay' where the total is negative; or
a) when the refund transaction appears on the bank matching screen, click on it and in the popup, select 'Supplier Refund' from the 'transaction type' dropdown menu
With both options, you should select the same fund/category that the original purchase was recorded against.
Both options will create a negative expense and 'net off' the original expenditure.
If the supplier issues a credit note
The supplier might choose to issue you a credit note to reduce a future payment.
- If the deduction is shown on an invoice you have received, reducing the amount you owe to the supplier, you can simply process the invoice as usual.
If the deduction is not shown on the invoice, then you need to apply the credit note when you enter the 'invoice to pay' on the purchases screen. In the Budget Details section, enter the invoice amount in full e.g. £3100, and add a second line as a negative amount for the deduction of the credit note e.g. -£300. The total amount to pay is then £2800.
If the amount owed to you is greater than the invoice you have received from the supplier, then you don't need to enter the supplier invoice into ExpensePlus at this point, as there will be no invoice payment to make.
Instead, you should wait until you owe money to the supplier, at which point you can follow the process outlined above. If you need to combine multiple pdf documents (to add multiple invoices to one payment) try Smallpdf to do this before uploading to ExpensePlus.
To help you better understand the Purchasing module, please visit the module overview page here.