Supplier purchase receipt (refund)

Find this screen

Open: Purchase Ledger > Enter Transactions > Purchase Receipt

Open: Cash Book > Payments and Receipts > Sales and Purchase > Purchase Receipt

Note: Use either of the Purchase Receipt options in the menu, there is no difference between them.

How to

Enter a supplier purchase receipt (refund)

Open: Purchase Ledger > Enter Transactions > Purchase Receipt

  1. Select the Bank account.

    Note: You must have created at least one bank account to enter this type of transaction. You can't select a nominal account for this transaction in the Web Portal.

  2. Choose the Supplier account.

  3. Enter the transaction details:

    • Enter the Transaction Date. This defaults to today's date.

    • Enter the Reference and Second reference if required.

    • Enter the Supplier receipt value.

    • Enter the Early settlement discount if required.

  4. Select Save.

    This does not allocate the refund, which you can only do in the Sage 200 desktop.

Enter a foreign currency receipt (refund)

If you choose a supplier that uses a foreign currency, enter the following additional details:

  1. Currency: The supplier's currency is entered by default. Select a different currency if required.

  2. Exchange rate: The current rate is displayed.

    • To change the rate, select Change Rate. You can either enter the new exchange rate, or calculate the rate by entering the Converted value in the foreign currency.

      Note: You can only change the exchange rate if it's set to be Amendable in Currencies and Exchange Rates (in the Sage 200 desktop).

  3. Bank charges: Enter bank charges if applicable. Bank charges are entered in the same currency as the bank account.

    Note: You can only enter Transaction Analysis details if you have enabled Allow additional transactional analysis in Supplier Defaults and Settings.

    Note: If you want bank charges to be included in your VAT return, then don't enter your bank charges here. Instead, you should enter the bank charges as a separate Nominal Vatable Payment or Nominal Vatable Receipt, using the appropriate VAT rate.

  4. Select Save.

    This does not allocate the refund, which you can only do in the Sage 200 desktop.

If there is an exchange rate gain or loss between the transactions, this is dealt with by Sage 200 automatically.

Useful info

Receipts (refunds) with early settlement discounts

A settlement discount is where you are offered a discount if you pay an invoice early. Your supplier usually specifies the number of days the invoice has to be paid within to qualify for the discount.

  • In the UK, if the invoice is paid within the settlement discount period, VAT is only charged on the discounted amount (Goods value minus Discount value).
  • In Ireland, VAT is calculated at the goods value regardless of any settlement discount.

If the invoice is paid within the agreed number of days, then you claim the full discount value when you enter the payment.

  1. Enter the invoice. Include the settlement discount details on the invoice. The full invoice value is posted to the supplier's account.

  2. Enter the payment. If you qualify for the discount when you pay the invoice, you'll pay the invoice total minus the discount amount. You enter this as the payment value and you also enter the amount of the discount.

    • The discount is added to the amount paid to make sure that payment matches the invoice. This is posted to the supplier's account and the Creditors Control account.
    • The amount paid is posted to the bank account and the discount amount is posted to the Discounts Allowed nominal account.
    • For example, for an invoice of £119 with a £5 settlement discount, enter the payment amount as £114 and discount amount as £5.

You offer a settlement discount of 5%:

  1. You record the details of an invoice for £100. VAT is calculated at £20. You enter the discount percentage and amount which is £5.
  2. You pay the invoice within the specified period, so you owe £114. This is the gross amount (£120) minus the net discount (£5) and the discounted VAT (5% x 20 = £1).
  3. You record the payment and enter the value as £114 and add the discount value as £5. This creates a transaction value of £119.
  4. You allocate the invoice (£120) to the payment (£119). The VAT discount (£1) remains outstanding.
  5. You record a credit note for the VAT amount of £1.
  6. You allocate the credit note to the remaining balance on the invoice.
Example of settlement discount transactions
Transaction Nominal Account Debit Credit
Invoice Creditors Control   120
  Net 100  
  VAT 20  
Payment Discounts Taken   5
  Bank Account   114
  Creditors Control Account 119  
Credit Note Creditors Control Account 1  
  VAT   1

To make sure that the settlement discount details are always entered when transactions are entered for a supplier, you can add the settlement discount details to the supplier's account (Payment tab). The Discount percent, Discount Days are then automatically applied each time you enter a transaction for this supplier.

You can change the discount details when entering an individual transaction if you need to. This does not update the supplier's account. If you change the Discount Value, the Discount Percent is updated and vice versa.

Receipts (refunds) with a currency gain or loss

If you are using Use foreign currency revaluation (Supplier Defaults and Settings), the currency gain or loss is calculated automatically.

If the exchange rate used for the refund is different to the exchange rate used for the payment, Sage 200 automatically works out the currency gain or loss and posts it to the Nominal Ledger, when the refund is allocated. When this occurs, the additional transactions are posted with a reference of REVALUE, according to whether it is a currency gain or loss.

Nominal transactions for a currency gain
Nominal Account Debit Credit
Creditors Control Account Amount of gain

 
Revaluation Account   Amount of gain
Nominal transactions for a currency loss
Nominal Account Debit Credit
Creditors Control Account  

Amount of loss
Revaluation Account Amount of loss  

If you are not using Use foreign currency revaluation, you must post a separate nominal journal (in the Sage 200 desktop) to account for the currency gain or loss.

Fix it

You'll see warning if you have set Transaction date validation in System Settings in the Sage 200 desktop.

  • If the date entered is in the Unacceptable range, the transaction cannot be saved.

  • If the date is in the Acceptable range, the transaction can still be saved.

This could be because:

  • The supplier and bank account use the same currency. You can't change the exchange rate on the refund. The refund is posted to the Nominal Ledger using the exchange rate set in Currencies and Exchange Rates in the Sage 200 desktop.
  • The exchange rate is not set to be Amendable. To check or change this, use Currencies and Exchange Rates in the Sage 200 desktop.

What happens when I

Save a receipt (refund)

If you have set the nominal ledger to update immediately in System Settings, the nominal account and supplier account are updated immediately. If the transaction is dated in a future period, it is posted when the period is opened.

If you have not set the nominal ledger to update immediately, transactions in open or closed periods are posted to the current postings file, and transactions for future periods are posted to the deferred postings file.

The following table shows the nominal account postings:

Nominal account transactions for a receipt (refund)
Nominal Account Debit Credit

CreditorsControl Account

 Refund value
Bank Account Refund Value

The supplier's account balance is reduced by the refund value.

Save a foreign currency receipt (refund)

The Nominal Ledger is updated. This table shows the nominal account postings:

Nominal account transactions for a foreign currency receipt (refund)
Nominal Account Debit Credit
Creditors Control Account Payment value in base currency
Bank Account Payment value in base currency.

The supplier account is Increased by the receipt (refund) value in the original currency.

If the receipt (refund) is allocated to an invoice, you have enabled Use foreign currency revaluation, and there is an exchange gain or loss, the following nominal account postings are made:

Nominal account transactions using foreign account revaluation with an exchange gain or loss
Nominal Account Debit Credit

Debtors Control Account

 Gain

Loss
Revaluation Account Loss Gain

Save a receipt (refund) with a settlement discount

The following table shows the nominal account postings:

Nominal account transactions for a receipt (refund) with a settlement discount
Nominal Account Debit Credit
Creditors Control Account Total refund value: refund +discount
Bank Account Refund value
Discounts Allowed Discount value

The supplier's account is reduced by the total refund value.

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