Crediting supplier invoices and recovery payments

1. From the payer account (either landlord or tenant)

From landlord:

• Right-click Payments and select Credit Note
  

From tenancy:

• In the Accounts Functions panel, click Invoicing and select Credit Note
  

2. Find paid credit note

To find a paid credit note:

• Click Filters and untick Only show outstanding invoices 
  This will show all invoices ever created against the account

• Tick next to the invoice that needs to be credited and click Next 

• Enter a reason for the credit

• Click Finish

3. Recovering money from the supplier

If the payment has been made to the supplier past the point of the ABA/BACS and Cheques Run, an option to recover supplier payments is offered

• If you will deduct this amount from future payments to the supplier - see step 4
  If you can deduct the amount of the credit note from your next payment to the supplier, you can create a recovery payment - this is ideal if you pay the supplier frequently
  This does not apply if the invoice was originally paid by BPAY
  

• If the supplier will be returning the refund to the bank account - see step 5
  This process should be followed if the supplier was paid by BPAY or if you don't pay the supplier very often - this process creates an invoice on the supplier ledger - showing that they owe this money and you are expecting it to be returned to the bank account

4. Deduct amount from future payments to the supplier

From the screen shown in step 3:

• Click Yes

• Next time you make a payment to this supplier, it will be less the amount of the recovery payment, this will be displayed on their remittance

Example scenario:

• £69.60 is set to recover

• a future works order to the same supplier is raised, costing £80.00 and paid

• the system will only pay out £10.40 to the supplier while the £69.60 is recovered back in to the client/trust account

Country-specific notes

UK: once the credit note is created, the funds will be available to return to the landlord/tenant immediately - best practice is to ensure any credit notes or recovery payments are monitored to ensure that the money is eventually recovered from the supplier - otherwise the agent may need to cover this cost

Australia: the funds from the credit note will not be available to release to the landlord/tenant until the credit has been fully recovered from the supplier - this means a recovery payment has been processed through the ABA & Cheque Run - this is to prevent the Trust Account being becoming overdrawn

5. Supplier returning the refund to the bank account

From the screen shown in step 3:

• Click No
  This will create an invoice for the supplier to pay

• On receipt of funds, these should be receipted to the supplier, which will then be used to pay the credit note

Country-specific notes

UK: once the credit note is created, the funds will be available to return to the landlord/tenant immediately - best practice is to ensure any credit notes or recovery payments are monitored to ensure that the money is eventually recovered from the supplier - otherwise, the agent may need to cover this cost

Australia: the funds from the credit note will not be available to release to the landlord/tenant until the credit has been fully recovered from the supplier - this means the supplier needs to have returned the refund to the trust account to pay the invoice - this is to prevent the Trust Account being becoming overdrawn