New to accounting. I have the following scenario:
I tried to create a journal entry like this:
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Account | DR | CR | |
| Bank | 100 | ||
| Refund Buyer | 100 | ||
| Revenue | 100 | ||
| Returns | 100 | ||
but I can’t select my bank account from the drop down
Bank accounts are not available in Journal Entries.
Go to View Invoice->Copy to new Credit Note.
This will Credit Customer and Debit Inventory Sales. It will also return items to inventory on Hand by Debit Inventory on Hand and Credit Inventory Cost.
Then create New Payment select Customer, then Accounts Receivable in dissection line and choose the relative invoice. This will debit Customer and credit bank.
You may need use Customise to activate Credit Notes.
Bank accounts are available in Journal Entries - this was added some time ago
However, I would advise using a Credit Note and Payment as this gives a much clearer audit trail
Oh yes! You are correct - need to select the Control account first to see each bank account.
Thank you for the detailed response. What if I don’t want to debit inventory on hand such as when I don’t want the item back from the customer? Do I just make another entry to credit Inventory on Hand and debit “Forfeited inventory”?
When doing the credit note delete the inventory item and change the Account to “Forfeited Inventory”.
Write off inventory to record loss, damage, obsolescence, conversion to internal use, or other non-revenue reductions of inventory.