Purpose

When a supplier refunds money, we receipt the funds to the Clearing Property, then process an Accounts Payable Transfer Journal to reduce the original expense in the relevant property.

Important rule

✅ Do NOT receipt the refund directly to the property.
If you do, it will appear as property income, but the correct outcome is to reduce the original expense.

Step 1 — Receipt the Refund (to Clearing Property)

1. Go to Accounts Receivable > Receipts

2. Set the following:

   • Property: Clearing Property

   • Lease/Debtor: MISC

   • Direct Deposit Name / Date / Amount: match the bank statement

3. Click Add Credit / Sundry Receipt

4. Enter the receipt details

5. Tick “Sundry Receipt” (IMPORTANT)

   • If you miss this, the receipt won’t behave correctly (see internal notes: Credit / Sundry Receipts - cirrus8)

6. Enter the Amount

7. Click Add

8. Click Process Receipt

✅ Result: Refund cash is now sitting in the Clearing Property ready to be allocated correctly via a journal.

 

Step 2 — Process Accounts Payable Transfer Journal

1. Go to Accounts Payable > Transfer Journal

2. Complete the header details:

   • Supplier: select the creditor/supplier the refund came from

   • Transaction date: the date the funds were received (per bank statement)

Transfer Expense From (reduces expense in the correct property)

This section ensures the property’s original expense is reduced.

Fill in:

• Property: select the property entitled to the refund

• Account: select the same expense account the original invoice was coded to

• Description: e.g. Refund from JD Plumbers

• Dates (From / To): match the dates on the original expense

• Amount: the refund amount received

• GST: select GST Free or GST Taxed — match the original expense

✅ Effect: Expense decreases for the relevant property.

Transfer Expense To (posts the other side to the Clearing Property)

This section clears out the Clearing Property entry created in Step 1.

Fill in:

• Property: Clearing Property

• Account: use the same account code as above

• Description: same as above (e.g. Refund from JD Plumbers)

• Dates: will auto-populate

• Amount: will auto-populate

• GST: GST Free

✅ Effect: Clearing Property is used only as a holding location, and the final outcome is an expense reduction, not income