Use Customer/Supplier or Other for reverse transaction

I have converted all my customers on receipts to the customers field and done same for suppliers on the payments to use suppliers field - from others.

For transactions where I have received money back from a supplier because I have overpaid or they can no longer supply the goods that I ordered, do I still record them as the supplier even if I am receiving money from them?

Same question with clients where I have refunded money for whatever reason.

I have for the moment left these transactions as “other” instead of selecting the customer/supplier field. My understanding is that these reverse transactions were resolved by making Manager recognise that it was a reverse transaction by selecting customer/supplier on the payments/receipts form even if the money transaction was the other way around.

But I just wanted to make sure as I didn’t know many of the examples put forward in August when Manager was changed from debit/credit to payment/receipt and then back again and then later changed to whatever Manager uses now to determine whether a transaction is a payment or receipt or whatever the problem was.

Yes sure, you can use customer / supplier for all transactions, even reversals.

This way the reversals can be traced back to customers and suppliers easily.

Thanks for confirming. I thought that this was the case.

You can use credit note for customers and Debit note for suppliers.

For cash transactions assigning the customer / supplier then entering the other payment / receipt payment reversal details is now equivalent to using credit / debit note for transactions where the invoiced in entered into Manager.

To be clear on what I am asking about. I do use credit and debit notes. What I am referring to is whether to select other, customer or supplier on the drop down field in the payments/receipts form. Yes I know that if I am refunding a customer that I am dealing with a customer.

But I was not sure how this affected the issue of Manager knowing whether this is a purchase or sale transaction in terms of using one tax code as was discussed at length in August.

If you are using invoices, credit notes, or debit notes then it makes no difference as line items in a payment/ receipt posted to accounts receivable/payable can not have a tax code.

However for cash sales/ purchases posted directly to income/ expense / capital accounts, tax codes can be set and Manager must assign these to the sale or purchase component of the tax code totals.

That is a very good point! I had forgotten that the discussion did say that this single tax code issue only really applied to cash transactions in payments/receipts as well as some journal entries.

Because I just picked up that on some of my bank payments in payments/receipts, I have deposited one amount which includes several different clients. Which raises the question of how the customer, supplier and other is supposed to work when they are all clients, but you can only select one customer in the customer dropdown. The whole point of linking the customer/supplier to the payment/receipt was to enable reports in general ledger etc. But this only works if the amount is only from one customer or supplier rather than several different ones when cashing cheques.

The transaction level selection allows setting one customer or supplier for all line items

For payment/ receipts where that is not the case the the whole transaction applies to neither one customer or one supplier; an “Other” arrangement applies, so the data entry person selects “Other” at the transaction level and specifies the customer/supplier for each line item.