Hi, team, and welcome. I'm Reuben from Link Academy and in this session we're talking bank reconciliation
and more specifically what to do when there's a supplier based cash refund.
So that's the scenerario where we've, perhaps accidentally, overpaid a supplier
and they send us the money back or perhaps we have a supplier prepayment that they are refunding to us.
Or the other scenario is a credit note, supplier credit note that they are refunding us in cash form.
So I'm gonna take you through how to reconcile that inside your Xero.
So to get started with reconciling a supplier cash refund that you've received
click on your reconcile button.
I'll show you what-- the trouble that most people run into.
So we go and find one of these...
cash refunds, it'll be some money coming in from a supplier.
Let's find a few examples, so
the three different scenarios are: credit note, supplier credit notes we get refunded,
supplier prepayments when you get refunded
or supplier overpayments when you get refunded all in cash.
So here is an example here of an event management company, prepayment and
we've seen that money out to them
and let me see if we can find the money that's coming back in.
Alright
No, that's not a good example. Here we go.
Bayside Wholesale prepayment, so they're actually sending money back to us
for a prepayment we've made to them, okay?
That might be because we decided not to go ahead or we've cancelled our order
or something to that effect, alright?
So what most people would when they're faced with this,
we'll click find and match and we'll type in
Bayside.
And what you'll notice is that it brings out all current invoices,
but not-- it's not gonna bring out the prepayment that we're expecting, okay?
So that's the difficulty that you're going to run into.
Now what I'm gonna take you to is one fool proof method
to deal with any supplier based refunds, so that's supplier credit notes you receive cash for,
supplier prepayments you receive cash for and supplier overpayments you receive cash for.
And this is the one way to do it: we're going to go to accounts and purchases.
So if you just learn this method that will solve all three of your problems.
Click into awaiting payment and we'll view our entire accounts payable list.
So we've got three different scenarios here. Here we got Bayside Club,
that's a credit note.
That's a credit note they have provided us that we haven't allocated to an existing invoice,
and we wanna receive cash for that. So if we open up that credit note
They're gonna refund us cash for this
and like you saw, we wouldn't be able to do that on the reconciliation screen.
So I'm gonna open this up and I'm gonna say on this date.
Not that date, that's in the past. On this date we'll receive that amount of money
into this bank account for this credit note.
We're going to click add refund.
Easy as that.
If we do that again, I'll just go back to-- Here we go, we go to Gateway Motors here, what are they?
That's an overpayment, no, no that.
Not trying to do overpayment.
Here's a prepayment one, we'll do that one as well.
So I'll show you that again, prepayment, open that up, and at the bottom here
you have an amount, we're saying on this prepayment we were refunded on this date
into this bank account, we'll click add refund.
So it's gonna close out that prepayment
and let us match it up in our account, our bank reconciliation.
Fantastic.
Okay, cool. In this Gateway Motors, let me just check this one out.
Maybe we have already done that part. Okay
We'll go and reconcile our bank account now.
So if we jump back into our bank account, we'll click reconcile.
What we'll see that's different now is that it should light up green for us,
because it should be able to find the refunds that we've loaded in
against those transactions. We click next.
Here we go.
Fantastic. Okay, so here's one, Bayside Club and unlike before
we went to find a match and couldn't find a credit note,
we had managed to find the cash refund for that credit note, so we're going to click OK
Brilliant, just easy and just like that. Here is our prepayment that we had refunded to us
and, again, here is our refund that we created. We'll click OK.
Beautiful. The last scenario would be the overpayment, so same method,
go and find that overpayment record, and
create your cash based refund and it'll light up for you as well.
So that's the one fool proof method for closing up
and reconciling any supply based cash refunds,
so that's overpayments you have made, prepayments
that you're having refunded to yourself or supply credit notes
that you're getting cash refunded for.