Hi all,

I have a situation in how to account for a creditor refund. The scenario is:

Prepayment to Goods Supplier     1000

Goods received                                   900

Supplier invoice                                   900

Supplier refund                                    100

As the prepayment as been paid on a proforma invoice, the supplier short supply one item and took it out in the invoice. Also, supplier refund the balance to us.

As the goods received and invoice are 900, that will offset each other. Leaving 100 debit balance in the supplier account and it has been refunded by EFT.

How do we process this refund?

Thanks,

Keen