How to account Bank Charges or transfer charges o Supplier refund (debit Note) Amount to tally Supplier Account
You need to provide more specific information. Describe the scenario, as your question is very open-ended. Or are you asking three separate questions? If so, they should be in separate posts.
Q1 Were the bank/transfer charges part of the Supplier refund or a separate transaction.
Q2 If part of the refund (debit note = 200), did the charges increase (210) or decrease (190) the refund.
If they were separate transactions , then just process them individually.
If the charges were part of the refund, then Receive Money (either 210 or 190) and put the Debit Note value (200) to Accounts Payable + Supplier + Invoice and then add a line and put the +10 or -10 to bank charges.
Thanks for your Reply.
These transfer charges are not the part of Supplier Refund.
Since the Purchased Amount & Supplier Refund is different, we accounted it as bank charges/Transfer Charges.
Total Purchased = 500
Purchase Return = 480
Transfer/bank Chrgs =20
So if we are making two entries, one the Actual Amount Received from bank Account and Receive money. How to make second entry so that the Supplier Account to tally?
So the charges are the difference between the Purchase and the Refund - these types of charges are known as Handling Fees or Restocking Fees as they are charged by the Supplier and not by a bank.
It is being assumed that the Purchase Invoice (500) has been paid and that is why you are receiving a refund.
First you need to take up a Debit Note so that the Inventory levels can be adjusted. The Debit Note details would match the Purchase Invoice
Then you would do the Receive Money (480) with 500 going to Supplier account and -20 going to an expense. (Note the minus sign)
The Suppliers account now looks like this
For a fuller description read this Guide
Thanks for your immediate response and Step by Step Procedure. Now its clear.