Refunds from suppliers

Daniel E
Daniel E Registered Posts: 28 ? ? ?
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

Comments

  • rwb
    rwb Registered Posts: 32 Regular contributor ⭐ ? ⭐
    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
    Daniel E Registered Posts: 28 ? ? ?
    I'm talking about in a situation where you'd already paid the supplier and then get refunded (by BACS for example).
  • PGM
    PGM Registered Posts: 1,954
    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
    Daniel E Registered Posts: 28 ? ? ?
    Thanks but I'm not using software. This is a question regarding entries in physical ledgers.
  • PGM
    PGM Registered Posts: 1,954
    Cash refund;

    Dr Bank
    Cr Expense
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