Hi,

I'm relatively new to Sage, so I appreciate I maybe don't have the best understanding of how the system works, but I'm trying my best to get my head round it. I seem to have made good progress the last few weeks. Feel free to correct anything I say below, or throw in suggestions you feel may help.

However, one thing I am struggling to work out is the best way to process customer refunds. 

I am generally using my bank feed to "create" transactions in sage. Most of these outgoings are now being assigned to appropriate ledger accounts, and incoming receipts from customers I am generally matching to the correct sales invoices.

However, recently I have had two customers overpay me accidentally. This is where things have got confusing for me; I don't know the best way to record these, especially considering I import all my transactions from my bank statement. 

I have read about credit notes [sales/purchase?], payment on accounts etc. but none seem to give me a seamless way to do this. 

I'm currently a little stuck as to where to go next. From what I can remember, I done the following:

- Incoming payment of £710 - applied this as a "payment on account" under my customers name.

- This customer now has an outstanding balance of MINUS £710.

- Outgoing payment of £710 - I cannot seem to apply this as a refund direct from my bank feed. 

I am presuming the only way is to actually discard this payment from the bank feed, and manually create a customer refund as a new payment. Would this work? Is it the most efficient way?

Thanks,

Chris