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FormerMember

Refunds

SUGGESTED
Posted By FormerMember

Please can someone advise the correct way for me to account for this refund:

In May I purchased an iPhone for £459.99. This went on to May's VAT return and I reclaimed 50% of the VAT due to it being for personal and business use.

This week I have returned it for a full refund. There doesn't seem to be a simple way to reverse the money out transaction and I want to ensure I'm doing this correctly, especially because of the VAT.

Thanks!

  • 0
    SUGGESTED

    Hi Gareth, 

    Thanks for using Sage City.

    In Accounting Start you are unable to record a refund that is directly linked to a money out transaction. If this has been refunded we wouldn't want to reverse the initial purchase as we want to closely replicate what has happened in real life. The only way to record the money coming back into the account would be to record this as a separate money in transaction with the details of the refund you have received. I would recommend adding a note into the reference field so it is easy to tell that this was the refund for the iPhone purchase at a glance. 

    Hope this helps. If this has answered your question please click More > Verify Answer.

    Kind Regards,

    Jack Middleton
    Sage Business Cloud Customer Services
    Sage UKI

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