A supplier has given a refund for a paid supplier invoice. This can happen when you pre-pay an expense such as for workers compensation, medical cover, insurance, overseas orders, etc.
Note: Do not use an adjustment to reverse a payment as it will have no effect on the payments report or bank deposit list and may generate postings to the incorrect general ledger accounts.
Check existing Masterfile transactions
Before you begin, check the details of the supplier invoice that is being refunded and note the original payment date and amount and the supplier invoice number against which the original payment was made. To check those details:
Choose Masterfiles, Suppliers, Suppliers, Enquire.
Enter the Supplier Code.
Choose Trans (F5) to view the list of transactions against this supplier.
Choose Options (F8) and select Display Transactions with Zero Balance tick box then choose Accept (F9) to view the paid invoices for the supplier.
Locate the required payment and note down the Doc Number of the invoice, the Tran-Date of the payment and the Doc Amount of the payment.
Pick up the supplier refund
To receive a refund from your supplier, which is the same process as reversing a supplier payment, refer to this article: Reverse a supplier payment.
Once the refund is processed, check the Masterfile Transactions again (refer above section) to ensure the refund was done correctly and the balance of the invoice is what you expect. If you've followed this article to this point the supplier invoice should now have an outstanding balance.
Clear the balance on the supplier invoice
To clear the balance on the supplier invoice you need to process a credit adjustment note. You can read in all or only some lines of a supplier invoice to do this. Or you can create a new supplier credit adjustment note, according to your requirement. Refer to this article: Reverse a supplier invoice.