Refunding a credit note with a cheque

[Louise]

Hi, sorry me again!
This is at work - we give a money back guarantee and the customer was sent a credit note for (£329.00). However the customer pays us by Standing Order and therefore would not be able to take the credit. So I said I would send them a cheque instead, but I had already put the credit note on their account. I realise I must put a dummy invoice on their account to clear the credit note but do I use the same nominal code as the credit note or shall I use mispostings - and when I enter the cheque as a payment from the bank which nominal shall i use, also is it just these two postings I do?

[brucedenney]

I think you should find that you now have a credit balance on the Customers account (ie negative value) what you want to to is refund this credit balance to the customer.

In Version 2007 there is a new transaction to do this, but I think you are on an earlier version.

The solution is a three part process.

1/ To a bank payment to the mispostings account for the customer (T9 no Vat).
2/ Do an invoice to the customer against the mispostings account to represent the cheque (T9) no vat.
3/ Do a Zero value customer receipt and match the invoice against the credit balance.

[Louise]

So in the Bank I post the cheque going out using the mispostings code then post an invoice to the customers account using the mispostings code to clear the credit note is that right?

[brucedenney]

Spot on