UK Credit Note? Refund?

[Lamina]

HI, The Invoices were posted to the wrong Supplier account. We had overpaid to the supplier. What is the correct way to return money back: 1.to delete wrong Invoices from the Supplier account (Invoices dated in 2021)? 2. Ask them for the Credit Note? 3. Raise Credit Note in Supplier account? and so on.
Thank you.

 

[Truemanbrown]

I am a little confused by what you are saying.

You say that you posted purchase invoices from Supplier A to the wrong supplier account (Supplier B). So, you would then amend the posting so that the invoices go to the correct supplier account (Supplier A).

If you have payments matched in Supplier B against those invoices, then you will need to unmatched those payments. Then you will have an overpayment in Supplier B. I would then contact Supplier B, with evidence of the overpayment, and ask for a refund.

But then you have a liability to Supplier A. Have you paid off the Supplier A already because I cannot believe that they would not have contacted you about the non-payment of invoices from 2021.

 

[Lamina]

HI, thank you for your reply. I would ask Supplier B for a refund, but my manager asks for the credit notes from them. That is why I became confused. Amendments were done for the correct Supplier A in 2021, that is why I did not ask that question.

 

[Truemanbrown]

I presume you are still trading with Supplier B. If that is the case, are they sending you regular statements?

Are these statements showing the overpayment on them? If not, why not? Could it be that they have already netted off the overpayment against later invoices? It should be obvious from the statements what has happened.

If you do not receive statements, then call the supplier and ask them for a full breakdown going as far back as 2021 and see what they have done with the overpayment.

If it is still sitting on their account, unmatched against invoices, then you can ask them either to: -

• send you a refund.
• set off against the next batch of invoices from the supplier.

Asking for a credit note will just cause confusion. How would they post the credit note -

Cr Supplier Account
Dr ??????????????????

 

[Lamina]

The Supplier B sent us the statement but said that was adjustment on their end. After reconciliation of Supplier B account, found out about the overpayment.
Thank you for your advice.