Refunds from suppliers

Daniel EDaniel E Feels At HomePosts: 28Registered
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

  • rwbrwb New Member Posts: 32Registered
    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 EDaniel E Feels At Home Posts: 28Registered
    I'm talking about in a situation where you'd already paid the supplier and then get refunded (by BACS for example).
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    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 EDaniel E Feels At Home Posts: 28Registered
    Thanks but I'm not using software. This is a question regarding entries in physical ledgers.
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    Cash refund;

    Dr Bank
    Cr Expense
Sign In or Register to comment.