We have introduced a new option to allocate the refunds received from the supplier in the Banks screen. The new explanation type has been added for the incoming bank transactions called "Refund From Supplier".
You have two options to allocate this refund from the supplier:
1. Allocation to Supplier
2. Match Debit notes
Allocation to Supplier:
If you allocate the refund to the supplier (Allocation to supplier) option and select the supplier name, the system will allocate that refund to the supplier account, and it will be loaded in a separate tab on the credit side along with the supplier invoices, the bank transaction will then be marked as "Allocated Not matched". You have to use this option if you want to allocate the receipt to the overpayment made to the supplier.
You can then allocate this refund to the payment to supplier transaction and match it.
Match Debit Notes:
If you choose the "Match Debit Notes" option and select the supplier name, the relevant debit notes that were not allocated with respect to this supplier will get displayed with the pending amount. You can select that one and match it straight away. Then that refund will get fully allocated to the debit note.
The account postings for these refunds allocations in the system will be as follows:
Bank Account – Dr.
Trade Creditor – Cr.
We hope this article helps you in allocating refunds from suppliers easily🥳🎉Happy days!