How to handle supplier refund?


My scenario is a little complicated:

  • [Invoice #001] of [Supplier A] is $401.45
  • I paid the said amount
  • Then a refund of $390.82 was made by [Supplier A] towards [Invoice #001], which they provided a CN to
  • I made a DN entry to [Invoice #001]
  • The amount refunded I want [Supplier A] to keep as prepayment for future purchases
  • Now shows [Invoice #001] as overpaid

Am I doing something wrong?

If you want the overpayment carried as a supplier credit, delete the reference to the specific invoice on the payment form. Leave Accounts payable and Supplier A. If a payment is allocated to a specific invoice, it remains tied to that invoice, causing it to be overpaid. If not allocated to a specific invoice, Manager will allocate it to the oldest unpaid invoice.

If necessary to control things more tightly because of other invoices, you can split the payment into two lines. Allocate one to the specific invoice so it is paid in full. Allocate the balance only to the supplier. The total of the lines will still equal the amount paid.

Read this Guide for more background:

1 Like

Well noted!

Thanks for your help!