What is the best way to record the following supplier refund.
We set up an insurance repair policy for the repair of an electrical appliance.
The amount was for £120, to be paid off in 6 monthly installments of £20.
We paid 2 installments, so the balance remaining on the original bill was £80.
The appliance then broke, so the repair policy was cancelled, and the 2 installments paid of £20 were refunded on 2 different days.
How do i record the refund so that it goes against that particular bill, and also so that the bill of £120, is in effect cancelled, and the supplier balance shows the correct amount, as we have a few different repair policies, and it's this particular one that needs refunding without affecting the other bills.
