This explains how to delete supplier payments.

If you use the Cash Basis scheme, you can't delete a payment already included on a submitted VAT return.

Instead, create a reverse transaction to clear the value from the:

• Bank account
• Supplier accounts
• VAT return

Once deleted:

• The deleted transaction shows in the audit trail with a line through it
• Any invoices allocated to the payment, now show as unpaid
• The balance on the supplier account updates
• The bank account balance updates

Reconciled payments

These payments appear in a bank reconciliation. On your bank activity, they have a tick in the reconciled column.

When you delete a reconciled payment:

• The payment shows on your bank reconciliation
• It has a Removed from reconciliation label in the Corrected Transaction column
• This confirms the deletion
  
• The Starting Balance of your next bank reconciliation updates
• The Starting Balance is always the total value of all reconciled transactions, up to the statement date
• The balance doesn't include deleted transactions

Delete a payment

1. From Banking, select the relevant bank account.
2. From the Activity tab, select the tick box to the left of the transactions you want to delete.
   A toolbar now appears above the list:
   
3. From the toolbar, select the Delete icon.

Reverse a payment

Do this when you use the Cash Basis scheme, and the payment is on a submitted VAT return.

This clears the value from your supplier and bank accounts and updates the VAT return. Then enter a new payment with the correct details.

If you haven't yet submitted the VAT return, delete the draft VAT return. Then, you can edit the payment as normal.

Unallocate the payment

Before you reverse the payment, make sure you remove the link to any invoices it's paying.

The invoices are now outstanding. They're ready to allocate to another payment where required.

The payment is now outstanding and ready to allocate to the refund.

1. Open the payment from the Bank Activity.
2. Clear the tick box from all the invoices allocated to the payment.
   
3. Choose Save and select Yes to save as a Payment on Account. This takes you back to the Bank Activity.

Next, create a refund to reverse the payment.

Create a refund with the same details as the payment

The refund is the opposite transaction of a payment. This means the two transactions cancel each other out. Allocate them to each other so you know you used the refund to reverse the payment.

1. Select New Entry, then Sale / Receipt.
2. Select Supplier Refund.
3. Enter the supplier, bank account, payment method, date, and amount. These details must be the same as the original payment.
4. As the original payment is now outstanding, you can allocate it to the refund. Select the check box next to the original payment.
   This makes sure you can track when you have made corrections.
   
5. Save the refund.

The refund updates your bank balance, cancelling out the payment. The refund is on the next VAT return, cancelling out the value of the payment.

Next, create a new payment with the correct bank account, date, amount, or supplier.

Enter a new payment with the correct details

If required, create a new payment with the correct date, amount, bank account, or supplier.

1. From Banking, open the relevant bank account.
2. Select New Entry, then Purchase / Payment.
3. Select the Supplier Payment tab. Enter the details of the new payment.
4. Select the check box next to the invoice the new payment is for, if required.
   
5. Save the payment.

Both the new payment and the refund appear on your next VAT return.

The refund and the new payment show in the bank activity.

The refund and new payment show on the next bank reconciliation. Reconcile the refund and the new payment straight away. This makes sure the starting balance is correct for the next bank reconciliation.