I have just received a credit note from a supplier, to refund me for a service they did not provide. They will repay the amount owed straight into my bank account in the next few days.
Please can you explain thoroughly how to input a supplier credit note and then reconcile it once the payment is received back from the supplier?
I’ve read some of the previous threads but don’t understand if I should use journal entries or debit notes - there doesn’t appear to be a tab for SUPPLIER CREDIT NOTES
A Credit Note from a Supplier is a Debit Note to you. Go to Customise and click the Debit Note selection, then Update at the bottom. This will create a Debit Note tab on the left. As you are getting a refund - don’t select an invoice under Debit field
When you receive the payment: Receive Money - account = Supplier Credits
Alternatively, if Debit Notes are going to be a rarity you could NOT activate the Debit tab and leave the Debit Note unprocessed. Instead, when the refund arrives you would Receive Money - account = the account used when you processed the Suppliers Invoice which included the wrong charge - this will put a reduction into that account.
A third option if you didn’t want to use the Debit Note tab but did want to process the debit note would be a Journal. Refer to the below sample. Change the 2nd line Suspense to the account where the wrong charge was allocated. When you receive the payment: Receive Money - account = Supplier Credits