Recording a refund

[Pip]

Hi
I'm just getting to grips with the ltd company package. All seems to be going well but I don't know how to record in the current account a refund received on an incorrect purchase. I've entered it on the purchases spreadsheet as a negative amount as per user guide p9, but none of the codes for bank receipts seem right. Can anyone help.

[antonycc]

Hello,

As well as the negative value in purchases to cancel out the expense, in the current account sheet there would be a negative number entered in the Payments section using the code CR (Creditors).

This should cancel out the original purchase which would have included:

A positive entry in Purchases
A positive enter in Current Account as a Payment to Creditors (CR)

(This explanation assumes a transaction going through the current account, it could equally have been a cash or credit card transaction.)

If the item was never actually paid for there would be no need to enter the bank transactions.

Thanks,

Antony.