UK dealing with invoices

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I am little confused as to how to deal with this.

I received an invoice from an electricity supplier in last VAT quarter. It was paid by dd. Then I gave them the right meter reading and they sent a credit note for the invoice that was paid and reissued another invoice for the reading that I provided.
They refunded the variance into the bank account.
I posted the 1st invoice in last VAT quarter ended in November. I received the credit note for that invoice in December and I have posted it. Then I also posted the right invoice for the reading provided. Now the supplier account is showing credit balance Of what they refunded. I reconciled the bank by directly posting as bank receipt.

Can anyone help me as to how to treat the credit balance on account?
 

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