Handling Refunds and Credit Notes in Scribe

Overview: Refunds and credit notes in Scribe involve managing financial transactions either to a customer or from a supplier. It's crucial to correctly categorize these transactions to maintain accurate financial records.

1. Refunds to Customers:

• Context: These are refunds given back to customers, like a refundable deposit for venue hire.
• Impact on Accounts: Originally recorded as income (in box 3 of your AGAR), these need careful handling to avoid misreporting.
• Process in Scribe:
  • Enter a "negative receipt" in Scribe.
  • This reduces the value in box 3 rather than increasing box 6.
  • How to Enter: Follow the instructions here.

2. Refunds from Suppliers:

• Context: These are refunds or credits received from suppliers, like a utility company.
• Impact on Accounts: Initially recorded as an expense (likely in box 6).
• Process in Scribe:
  • Enter a "negative payment" in Scribe.
  • This decreases the value in box 6 instead of inflating box 3.
  • VAT Handling: Ensure the VAT position is accurately reflected.
  • How to Enter: See the detailed notes here.

3. Correcting Mistakes:

• Situation: If you've entered a transaction incorrectly.
• Resolution:
  • Set the net value of the original entry to £0.00.
  • Re-enter the transaction as either a negative receipt or payment.
  • Use a minus or -£ value.
  • Important: Reconcile the new negative transaction on the same date as the original to ensure consistency in bank reconciliation.

FAQs:

• Q: What if I enter a transaction incorrectly?
  • A: Follow the process outlined in 'Correcting Mistakes' to rectify the error without affecting your bank reconciliation.

What should I do if I have made an error when entering a transaction?