Supplier Refunds
You use a Supplier Refund Document to record your Supplier returning money that is directly related to purchasing activity. The most common use of the Supplier Refund is when you return Items that you originally purchased from a Supplier that you paid immediately, and therefore used a Cash Purchase Document to record the Purchase transaction. If you are returning an item or you are unhappy with something you have purchased, you can use the Supplier Refund to record the return of the Item(s) to the Supplier, the corresponding amount of money you are paid back (i.e. refunded), the method used to be paid (Cash, Check, Card etc), and the destination bank account the refund will be paid into. In this situation, you would create a Supplier Refund Document from the original Cash Purchase Document.
Refund a Credit
A not-so-common situation is where you want to convert an outstanding Supplier Credit Note or credit balance to cash. You can convert a credit balance on a Credit Note to a Supplier Refund. You would do this when you have overpaid a Supplier or returned goods to the Supplier - you raise a Supplier Credit Note to adjust the Supplier's balance in Accounts Payable (Purchase Ledger) and then receive payment for the amount of credit you have applied in cash. Or you had previously applied a Credit (issued a Supplier Credit Note) to the Supplier's account balance and you have decided that you would rather convert this to cash.
Note: Unlike a Customer Refund, a Supplier Refund Document is typically not issued to the Supplier. It is simply used to record the transaction. This ensures you have a record of the refund, and that your accounts are correct.
See Creating new Transactions and Entering Line Items for the basic information. A Supplier Refund can be created directly from either a Cash Purchase or alternatively from a Supplier Credit Note. In either case, follow the usual procedure for creating a related Document detailed in Creating related Documents.
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