I have received refunds from suppliers. When I enter them as an invoice under expenses 'refund from supplier' but it adds on to the amount I can claim from HMRC ids doesn't deduct it from the balance what can I do. The credit shows on my monthly statement form the supplier so no bank entries

Hi 1608

We presume that you have initially created a bill or expense. If this is the case and you then receive a refund from a supplier you do not create another expense to account for the refund, you will have to create a supplier credit > enter in the date box the date that the refund appeared in your account > enter the details of what has been refunded, item/category, the amount and the applicable VAT > save and close. You will then have to create a deposit, select the new or plus/create icon > select bank deposit > enter the details, in the 'add funds to this deposit' section enter the suppliers name in the received from column, in the account column enter/select creditors/accounts payable, enter the amount and select No VAT.> save and close. You will have to link the deposit and the supplier credit > from the new or create/plus icon select cheque > enter the supplier in the Payee box, the deposit and supplier credit will appear on the right hand side, select add on both, save and close.