Hi Alison,

I'm going to assume you're working with the Standard VAT scheme. 

To refund the invoice you'd post a credit note with the same details and tax code as the invoice.  

To cancel the payment and show a refund, you'd post a supplier invoice to nominal code 9999 (mispostings) on a T9 tax code.  You will then be able to allocate this to the credit note to clear the balance from the suppliers account. 

Once you've done this, you post a Bank Receipt to nominal code 9999 on a T9 tax code.  This will clear the balance from the mispostings account and puts the money in to the bank account.

**If you're working with VAT Cash Accounting, then you'd enter all transactions with same tax code that was on the original invoice.**

Make sure you enter all transactions with the date of the refund.

I hope this helps.

Kind regards,

Rachael

Hi Rachael,  thank you so much for this.  All done.

Hi Rachael,  thank you so much for this.  All done.