Refunding customers through credit notes

1

Stop me if I’m doing completely the wrong thing…

I’ve got a credit note (for an amount of money owed to the customer), which is coded as an expense. I also have a corresponding payment from a bank account of the same value. I’d like to assign the payment to the expense, but since a credit note already exists, the amount is recorded twice, meaning the code has double the value!

Is there a way to record a payment on a credit note, that has been made against the bank account (except putting through a negative invoice).

tl;dr I want a bit of paper that shows the money will be leaving the account (to send to the customer), and I also want the bank account value to be correct.

2

When you issue credit note to customer, Manager will allocate the credit note amount to Customer advance payments account.

This means, the amount will sit as a liability on balance sheet. When you click on Customers tab, you will see your customer will have now the amount from credit note under Advance payments column.

If you are refunding customer for credit note, simply categorize that amount to Customer advance payments account.