Workaround for refunding a Credit Note in Accounting Seed

You can create a Credit Note in Accounting Seed by entering a negative Amount in a Billing or Payable. You can then allocate the Credit Note against an existing Billing or Payable invoice.

What you CANNOT do is create a negative Cash Receipt or Cash Disbursement to refund the Credit Note. The suggested workaround from Accounting seed is to create a Payable instead of a Billing Credit Note, or a Billing instead of a Payable Credit Note. This requires you to set the ‘Accounting Type’ field in the Salesforce Account record to ‘Customer & Vendor’ and may be confusing when looking at a Customer/Vendor Statement.

If you don’t like that solution, you can try this workaround:

  1. Create a new GL Account ‘Refund Suspense’
  2. Create your Credit Note (Billing or Payable)
  3. Create a matching Invoice (Billing or Payable) without any VAT and posting to the ‘Refund Suspense’ GL Account.
  4. Allocate the Credit Note to the ‘Refund Suspense’ Invoice.
    This will mark the Credit Note as having been refunded in the Customer or Vendor Statement.
  5. Create a Journal Entry to post the full amount of the Credit Note from ‘Refund Suspense’ to ‘Bank/Cash’.
    You can then use Bank Reconciliation and Bank Direct Connect to match the Journal to the money coming in or out of your bank.
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