Sometimes an adjustment note created for the right reasons is not applied to an invoice and needs to be refunded. For accurate record keeping we need to apply the note to a customer refund. To do this:
- Create an expense and tag the customer, amount and correct bank account.
- Ensure that accounts receivable is selected as the category (as this will clear the credit correctly once the adjustment note is assigned).
- Once this is completed save and close.
- Next create a received payment (to link the Expense and Adjustment note).
- Select the same customer.
- Tag the correct date of payment and bank account.
- Ensure the correct expense is ticked.
- Select the adjustment note beneath.
- Click Save and close
- You should now also be able to match the money going out to the expense.
Also note, you can use a journal instead of an expense, you will need to credit the bank account and debit accounts receivable. They advantage of this is that a journal unlike an expense will not upset you Profit and loss reports. It is useful if the customer is refunding an older credit that shouldn't affect current financial year’s sales figures.
