Exporting - How to manually record customer refunds - Sage Accounts v12 and below

Modified on 11/12/2014 12:04 PM by Suzanne Coy Categorized as Accounts and Orders, Sage Accounts Software
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__'''Question'''__

Occasionally, you may need to return money to your customers and to record this in your accounts. For example, the customer has returned 

some faulty goods that they have already paid for, or overpaid their account.

Note: If you are using Sage 50 Accounts or Sage Instant Accounts v14, please refer to Ask Sage article 21237 . If you prefer to 

automatically record the refund, please refer to Ask Sage article 11491 - How to use the Write Off, Refund and Returns Wizard.

__'''Answer'''__


This article contains the following sections:

How identify what transactions you need to post - This section explains the different possible scenarios and the transactions you must to 

post to successfully record your refund. 

'''To post a sales credit''' - This section explains how to post a sales credit.


'''To post a sales invoice''' - This section explains how to post a sales invoice 


'''To post a bank payment''' - This section explains how to post a sales refund. 


'''Note:''' The non-vatable tax code, T9 by default, is used when transactions are not to appear on the VAT Return. To check your non-

vatable tax code, open the Settings menu, choose Company Preferences then click the Parameters tab. The non-vatable tax code appears and, 

if necessary, can be amended.

'''How to identify what transactions you need to post'''

To successfully use the table below, you should view the customer's activity and identify the transactions relating to the money being 

returned.

@@@@<table width="1014" height="136" border="1" cellpadding="1" cellspacing="1">
  <tr>
    <th width="116" scope="col"><strong>Transactions</strong></th>
    <th width="863" scope="col"><strong>Examples</strong></th>
    <th width="157" scope="col"><strong>Transactions to post </strong></th>
  </tr>
  <tr>
    <th align="left" scope="row">SI and SR </th>
    <td><p>You have an invoice on the customer's account and a payment has been   allocated to it, the goods are faulty, have been returned and you must now send   the customer a refund.</p>
      <p>&nbsp;</p>
      <p>You have an invoice on the customer's account and a part payment that has   been allocated to it. For example, the customer paid a deposit, was sent the   goods which they have subsequently returned and they now want their deposit   refunded.</p>
      <p>&nbsp;</p>
    <p>You have an invoice on the customer's account and a payment that has been   allocated to it. Part of the shipment has been returned and you now want to   refund the money. </p></td>
    <td><p><a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#SC">Sales   credit</a></p>
      <p>&nbsp;</p>
      <p><a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#SI">Sales   invoice</a></p>
      <p>&nbsp;</p>
    <p><a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#BP">Bank   payment</a></p></td>
  </tr>
  <tr>
    <th align="left" scope="row">SA or SR</th>
    <td><p>A customer has overpaid an invoice and the amount overpaid has been returned. </p>
      <p>&nbsp;</p>
      <p>There is an outstanding payment on account on the customer's account, for   example, a deposit and the money has been returned.</p>
      <p>&nbsp;</p>
      <p>You have received a payment from a customer and the cheque has subsequently   bounced.</p>
      <p>&nbsp;</p>
    <p>You have received a payment from a customer and they have now stopped the   cheque.</p></td>
    <td><p><a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#SI">Sales   invoice</a></p>
      <p>&nbsp;</p>
    <p><a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#BP">Bank   payment</a></p></td>
  </tr>
  <tr>
    <th align="left" scope="row">SC</th>
    <td><p>A customer has an outstanding credit on their account and rather than set the   money against a future invoice it</p>
    <p> has been returned. For example, a customer has   paid an invoice, a credit has been raised because the goods</p>
    <p> were faulty and the   money has subsequently been returned. </p></td>
    <td><p><a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#SI">Sales   invoice</a></p>
      <p>&nbsp;</p>
      <p><a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#BP">Bank   payment</a></p>
    <a href="http://askbp.sage.co.uk/Scripts/bpasksage.cfg/php.exe/enduser/prnt_adp.php?p_faqid=11468&amp;p_created=1116892800&amp;p_sid=Fwy7*5Ck#Refund"></a></td>
  </tr>
</table>

Once you have posted all of the refund transactions required, you should then allocate together any related outstanding transactions on 

the customer's account. For further information about this, please refer to Ask Sage articles:

11712 - How to allocate a payment on account or credit to an invoice - Standard VAT

11754 - How to allocate a payment on account or credit to an invoice - VAT Cash Accounting

'''To post a sales credit'''

In the following example, you invoiced Bloggs Ltd for £100.00 plus VAT which is now being refunded. 

Note: If you need to produce a credit note to either send to your customer, update your stock, or both, you should create and update this 

from the Invoicing module and omit this section.

1) Open the Customers module then from the Links pane click Batch Credit.

   The Batch Customer Credits window appears.

2) Enter the relevant details on the Batch Customer Credits window, for example: 

<table width="1014" height="76" border="1" cellpadding="1" cellspacing="1">
  <tr>
    <th width="133" align="left" scope="col"><strong>A/C</strong></th>
    <th width="115" align="left" scope="col"><strong>DATE</strong></th>
    <th width="120" align="left" scope="col"><strong>N/C</strong></th>
    <th width="174" align="left" scope="col"><strong>DETAILS</strong></th>
    <th width="158" align="left" scope="col"><strong>NET</strong></th>
    <th width="126" align="left" scope="col"><strong>T/C</strong></th>
    <th width="150" align="left" scope="col"><strong>VAT</strong></th>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>BLOGGS</strong></th>
    <td align="left"><strong>Date</strong></td>
    <td align="left"><strong>4000</strong></td>
    <td align="left"><strong>Refund</strong></td>
    <td align="left"><strong>100.00</strong></td>
    <td align="left"><strong>T1</strong></td>
    <td align="left"><strong>20.00</strong></td>
  </tr>
</table>

Note: The nominal code, tax code, net and VAT amounts should be the same as the original invoice. 

3) To post the credit, click Save.


4) To close the Batch Customer Credits window and return to the Customer window, click Close. 

You have now posted the sales credit to reverse the effect of the original invoice from your Nominal Ledger and if you are on the 

Standard VAT scheme corrects your VAT Return.


__'''To post a sales invoice'''__

1) Open the Customers module then from the Links pane click Batch Invoice.

   Sage Accounts v11.xx and below - Open the Customers module then click Invoice.

   The Batch Customer Invoices window appears.

2) Enter the details on the Batch Customer Invoices window, for example:

<table width="1014" border="1" cellspacing="1" cellpadding="1">
  <tr>
    <th width="125" align="left" scope="col"><strong>A/C</strong></th>
    <th width="105" align="left" scope="col"><strong>DATE</strong></th>
    <th width="121" align="left" scope="col"><strong>REF</strong></th>
    <th width="114" align="left" scope="col"><strong>N/C</strong></th>
    <th width="153" align="left" scope="col"><strong>DETAILS</strong></th>
    <th width="119" align="left" scope="col"><strong>NET</strong></th>
    <th width="108" align="left" scope="col"><strong>T/C</strong></th>
    <th width="126" align="left" scope="col"><strong>VAT</strong></th>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>BROWN</strong></th>
    <td align="left"><strong>Date</strong></td>
    <td align="left"><strong>Refund</strong></td>
    <td align="left"><strong>9999</strong></td>
    <td align="left"><strong>Refund</strong></td>
    <td align="left"><strong>120.00</strong></td>
    <td align="left"><strong>T9</strong></td>
    <td align="left"><strong>0.00</strong></td>
  </tr>
</table>

Note: Use the date that the money is to be returned to the customer. VAT Cash Accounting - Use the same tax code, net and VAT amounts as 

the original receipt.


3) To post the invoice, click Save.


4) To close the Batch Customer Invoices window and return to the Customers window click Close. 

This sales invoice corrects the balance on the customer's account, posts a balance to the Mispostings Account nominal code. If you are 

using the Standard VAT scheme this does not affect the VAT Return as it has a non-vatable tax code, T9 by default. If you are using the 

VAT Cash Accounting scheme, sales invoices are not included on the VAT Return.

You must now post a bank payment to reduce your bank balance and clear the balance on the Mispostings Account nominal code.

__'''To post the bank payment'''__

1) Open the Bank module then click Payment.

   The Bank Payments window appears.


2) Enter the relevant details on the Bank Payments window, for example:


<table width="1006" height="509" border="1" cellpadding="1" cellspacing="1">
  <tr>
    <th width="222" align="left" scope="col"><strong>Bank</strong></th>
    <th width="779" align="left" scope="col"><p><strong>If required, enter an alternative bank reference, or press F4 then from the   drop-down list </strong></p>
    <p><strong>choose the required bank and click OK. </strong></p></th>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>Date</strong></th>
    <td align="left"><p><strong>The current program date appears by default. If required, enter a new date or   select a date from the<br />
    </strong></p>
    <p><strong>      calendar, for example, the date of the refund. </strong></p></td>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>Ref</strong></th>
    <td align="left"><strong>Enter a reference for the transaction here, for example your cheque number. </strong></td>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>N/C</strong></th>
    <td align="left"><strong>Enter the Mispostings Account nominal code, 9999 by default. </strong></td>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>Details</strong></th>
    <td align="left"><strong>Enter the details for the transaction here, for example, the reason for the   refund. </strong></td>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>Net</strong></th>
    <td align="left"><strong>Enter the net amount of the refund. </strong></td>
  </tr>
  <tr>
    <th align="left" scope="row"><strong>T/C</strong></th>
    <td align="left"><p><strong>Standard VAT scheme - You should use the non-vatable tax code, T9 by   default.</strong></p>
    <p><strong>VAT Cash Accounting - You should use the same tax code as the original   receipt. </strong></p></td>
  </tr>
  <tr>
    <td height="80" align="left" scope="row"><strong>Tax</strong></td>
    <td align="left"><p><strong>Standard VAT scheme - The VAT amount should be zero.<br />
    </strong></p>
    <p><strong>VAT Cash Accounting - You should use the same tax amount as the original   receipt.<br />
    </strong></p></td>
  </tr>
</table>


3) To post the bank payment, click Save.


4) To close the Bank Payments window and return to the Bank Accounts window, click Close. 


This bank payment reduces the balance on your bank account by the amount refunded to your customer, corrects the balance on the 

Mispostings Account nominal code. If you are on the Standard VAT scheme, this does not affect the VAT Return as it has a non-vatable tax 

code, T9 by default. If you are using the VAT Cash Accounting scheme, this transaction reverses the effect of the original sales receipt 

on your next VAT Return.
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Exporting - How to manually record customer refunds - Sage Accounts v12 and below
