How to bank money received for a supplier credit

A credit against your supplier may arise from an over payment by your business, or when returning parts. Commonly this credit will be used to offset future payments to that supplier, but there may be times that you receive a refund. 

Do not follow this process if the amount received is a factory bonus or service warranty

When a credit is against a supplier, it will display in brackets, as shown below.

As the credit is against the creditors account, it is not as simple as banking the amount, as the new banking screen will only pick up amounts in your debtor account.

Therefore we need to transfer the credit amount from creditors to debtors.

1. In the Accounts Payable tab, click Make Payments, then Bulk Payments & Transfers.
   
   
2. Select your Creditors account.
3. Highlight your Supplier, and click Transfer.
   
   
4. Select your Debtors account.
5. Ensure the type is Transfer.
6. Select No Consolidation (Same Payee) for the transfer consolidation. (This ensures it stays in the suppliers name)
7. Select the Line Item, enter a Reference, a Narration, and click Post.
   
   

You can now bank this amount in the New Banking screen

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