Supplier purchase receipt (refund)

Find this screen

Open: Suppliers > Enter Transactions > Purchase Receipt

Open: Cash Book > Enter Transactions > 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: Suppliers > Enter Transactions > Purchase Receipt

  1. Select the Bank account.

  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.

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

    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 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  

Fix it

You'll see a warning if the date is in a previous year, future year, or a closed or future accounting period. 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.

What happens when I

Save a receipt (refund)

The nominal account and supplier account are updated immediately, unless the transaction is dated in a future period. In this case, the transaction is posted when the period is opened.

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, and there is an exchange gain or loss, the following nominal account postings are made:

Nominal account transactions 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.

Sage is providing this article for organisations to use for general guidance. Sage works hard to ensure the information is correct at the time of publication and strives to keep all supplied information up-to-date and accurate, but makes no representations or warranties of any kind—express or implied—about the ongoing accuracy, reliability, suitability, or completeness of the information provided.

The information contained within this article is not intended to be a substitute for professional advice. Sage assumes no responsibility for any action taken on the basis of the article. Any reliance you place on the information contained within the article is at your own risk. In using the article, you agree that Sage is not liable for any loss or damage whatsoever, including without limitation, any direct, indirect, consequential or incidental loss or damage, arising out of, or in connection with, the use of this information.