Payments and Refunds

There are three options for recording the payment of invoices and the refund of credit notes.

Where possible, we recommend that you make use of the third option, the Bank Statement Import, to enter these transactions. This will enhance efficiency, accuracy and transparency in managing your payments and receipts.

However, when using the Bank Statement Import, timing differences can arise between the actual transaction date and the date that the value appears on your bank statement. This is especially relevant if you are registered for Cash Accounting VAT which has special rules regarding the payment date and the relevant date is not always considered to be the date that the cash/credit card/cheque clears in your bank statement (see HMRC website for further details). Therefore, in some cases, it may be more appropriate to use option one or option two as detailed below. This can then be followed by a 'matching' activity when the transactions clear on an imported bank statement, which will avoid duplicate entries.

 

The three options for entering payments and refunds are:


1. Directly from an invoice or credit note

Payments and refunds entered in this manner have the benefit of certain fields being pre-filled based on the invoice or credit note values.

 

2. In the Bank Transactions section

Payments and refunds entered in this manner are not initiated from an invoice or credit note. The relevant invoices or credit notes are instead selected from within the Receive Money or Spend Money transaction.

Click here for more help on this option.

 

3. Bank Statement Import
Import a bank statement file to create payments and refunds directly from the line items of the statement.

Any items already entered using option 1 or option 2 above, should be 'matched' during bank statement import processing, to avoid duplicate entry.

Click here for more help on this option