Delete a customer refund

You cannot delete a customer refund as it’s always linked to a customer receipt.

Cash Basis scheme

You cannot delete a refund that’s included on a VAT Return. Instead create a reverse transaction to clear the value from the bank account, customer accounts and VAT Return.

A refund always matches the receipt that is being When you delete the refund, the credit note or payment on account becomes outstanding ready to allocate again.

Reconciled refunds

When you delete a refund included on a bank reconciliation

• The refund shows on your bank reconciliation with a Removed from reconciliation status in the Corrected Transaction column, to tell you it's now deleted
  
• 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. Deleted transactions are not included in this balance

Delete a refund

1. From Banking, select the relevant bank account.

2. From the Activity tab, select the tick box to the left the transactions you want to delete.

   A toolbar now appears above the list.

   
   
3. From the toolbar, select the Delete icon.

You can refund a credit note or payment on account as needed when it appears as outstanding. However, once you reconcile it, the refund will adjust the reconciliation, reducing the starting balance on the next reconciliation. The deleted transaction will appear on the audit trail with a line through it.

Reverse a refund

You cannot edit or delete a refund included on a VAT Return in the Cash Basis scheme.

Instead enter the reverse transaction to clear the value from your customer supplier account, bank account and to update the VAT Return.

Reverse a refund allocated to a credit note

As you cannot delete or unallocate the refund, you must reverse the value of both the credit note and refunded do this create a new invoice and a new payment with the same date, bank account, amount and ledger account.

This removes the refund from you bank account balance, updates the balance on your customer supplier account and updates your VAT Return.

• Create a new invoice with the same date, ledger account and amount as the credit note. This reverses the credit note

  1. From Sales, choose Sales Invoices, then New Sales Invoice.

  2. Enter the details identical to the original credit note, and Save.

• Pay the invoice. This reverses the refund

  1. Once Saved, Select the invoice, then choose Record Payment. Make sure you select the same bank account.

• Enter a new credit note and refund with the correct details

Once saved

• The new payment receipt shows on you bank account, cancelling out the value of the refund. We recommend that you reconcile the new payment receipt straight away, to make sure you balances are correct before your next bank reconciliation
• The invoice and the new payment receipt show on the customer supplier account, cancelling out the value of the refund and credit note
• The new payment receipt is reported on your next VAT Return, cancelling out the previous refund
• Enter a new credit note and refund with the correct details

Reverse a refund allocated to a payment on account

As you cannot delete or unallocate the refund, you must reverse the value of the refund. To do this, create a new payment receipt with the same date, bank account and amount. This updates the balance of the bank account, the balance of the customer supplier account and the VAT Return.

1. From Banking, open the correct bank account.
2. Select New Entry, then Sales/ Receipt.
3. Select the Customer Receipt tab. Enter the customer , bank account, payment method, date, amount and VAT rate. This must be the same details as the original refund.

4. Choose Save and select Yes to save as a payment on account.

Once saved, the new payment receipt offsets the value of the refund in your bank account and will reflect in your next VAT Return, effectively nullifying the previous refund. We recommend reconciling this receipt to maintain accurate balances before your next bank reconciliation.