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:
- Create a new GL Account ‘Refund Suspense’
- Create your Credit Note (Billing or Payable)
- Create a matching Invoice (Billing or Payable) without any VAT and posting to the ‘Refund Suspense’ GL Account.
- 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.
- 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.