Edit a customer refund

Summary

How to edit a customer refund in Sage Accounting.

Description

Always fully allocate a refund to either a credit note or payment on account.

Resolution

How this works

Always allocate refunds to either a credit note or to a payment on account.

Reconciled refunds

These are refunds included on a bank reconciliation. On your bank activity, they have a tick in the reconciled column.

You cannot change the refund amount. Delete and re-enter the refund instead.

An edited refund stays reconciled, when you change the:

Reference
Method
Ledger Account
Date

as long as the date stays within the reconciled period.

For example, if the end date of the reconciliation is 31 July, and you change it to any date up to 31 July.

An edited refund becomes unreconciled when you change bank account. Also if date to a date is later than the end of date of the reconciliation.

For example: if the end date of the reconciliation is 31 July, and you change the date to 5 August.

For these transactions:

We remove the edited transaction from the completed reconciliation. We confirm this by adding a Removed from reconciliation label to the Corrected Transaction column
We update the starting balance of your next reconciliation. This is because we have removed a transaction
We unreconcile and update the transaction so it is ready for you to check and reconcile again
On the bank reconciliation page, we show the edited transaction with a Corrected label. This tells you that since reconciliation, you edited this

Refunds on a VAT Return - Cash Basis scheme

If you are on the Cash Basis scheme and the refund is on a VAT Return, you cannot edit or delete it. You must reverse the refund instead.

Edit a refund

From Banking, open the relevant bank account.
From the Bank Activity tab, select the row to open the refund.
Change the bank account, method, date, and reference, as required.
Save your changes.

Change the amount

When you change the amount, the refund must exactly match the total of the allocated transaction.

Update the amount.
Remove the tick from the transactions with the allocated refund.
To allocate to a different transaction, select Outstanding from the Display dropdown list. This shows all outstanding payments on account and credit notes.
Select the transactions to allocate.
The total of the selected transactions must match the total amount of the refund. You can see this when the Left to Allocate box is zero.
Save.

Reverse a refund

If you use Cash Basis scheme, and the refund is on a VAT Return, you cannot edit or delete it.

Instead, enter the reverse transaction. This clears the value from your customer 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 refund.

To do this create a new invoice and a new payment with the same:

Date
Bank account
Amount
Ledger account.

This removes the refund from your bank account balance. It updates the balance on your customer 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.
- From Purchases, choose Purchase Invoices. Select New Purchase Invoice
- Enter the details identical to the original credit note. Then Save
Pay the invoice. This reverses the refund.
- Once the invoice saves, 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 receipt shows on you bank account, cancelling out the value of the refund. We recommend that you reconcile the new receipt straight away. This is to make sure your balances are correct before your next bank reconciliation
The invoice and the new receipt show on the customer account. This cancels out the value of the refund and credit note
The new 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 receipt with the same date, bank account and amount. This updates the balance of the bank account, the balance of the customer account and the VAT Return.

From Banking, open the correct bank account.
Select New Entry, then Sales/ Receipt.
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.
Choose Save. Select Yes to save as a payment on account.