Refunds from suppliers

Daniel E

I think my brain must be on holiday but I've forgotten how to record Refunds from suppliers in the Purchase Ledger Control Account. I'm assuming you debit with a credit note once received and then credit the account with the refund? Would that be correct?

Thanks

rwb

A while since I've done this but I don't think you gan cr/dr across day books and general ledger. I think it should be:

DR Purchase ledger control

CR Purchase returns

I may be wrong though!

Daniel E

I'm talking about in a situation where you'd already paid the supplier and then get refunded (by BACS for example).

PGM

Supplier receipt - if your accounts package will let you.

Then the supplier account will be out of balance, so you need to put a credit note in to reverse the original invoice.

If you're software won't do this, the other way is to do a nominal receipt, this won't hit the purchase ledger account, so you will have to code it up with the original codes as the original invoice. But this will sort it out in one go.

Daniel E

Thanks but I'm not using software. This is a question regarding entries in physical ledgers.

PGM

Cash refund;

Dr Bank
Cr Expense