Refunds from Suppliers

Hi All,

Just a quick question..

If for any reason you need a refund from a supplier, when you receive it you will Debit the bank and credit the purchase ledger.

However, I was wondering, is the only way to get rid of this credit entry on the purchase ledger by requesting a credit note from the supplier which you can use to allocate against this refund?

Im guessing you can't allocate the refund against the payment the refund relates to as it would of already been allocated against the invoice?

Any help greatly appreciated.



  • Neillaw
    Neillaw MAAT, AAT Licensed Accountant Posts: 301 Dedicated contributor 🌟 🐵 🌟
    Your question doesn't make much sense.

    You receive a refund when the account has more credit notes on than invoices, you would then post the refund as you would a normal payment but as a receipt.

    Not sure why you would request a credit note to get rid of a credit, the payment on the account would actually be short.

    You say this is a supplier account but the content of the question pushes me more towards a sales ledger account
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Reading between the lines, the OP may have received a refund from a supplier without a corresponding credit note. The correct treatment would be to request a credit note from the supplier
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