Record money a supplier has returned to your trust account after an invoice was overpaid or paid twice. Allocate the receipt to the correct property; it does not need to belong to a booking.
Record the actual return once
Check the bank statement and existing Cashbook entries first. Money Returned records the incoming receipt; saving the entry does not recover money from the supplier or send a payment to the owner.
On this page: Before you start · Record the receipt · Confirm and check · Common questions
Before you start
- Confirm which supplier and property the original invoice relates to, and the amount actually returned.
- Have the receipt date, bank account, payment method and invoice/payment reference to hand.
- Check that the receipt has not already been imported or entered. Preserve the original payments when they reflect what actually happened.
Record the receipt
- Go to Trust Account > Add Transaction.
- Select the property whose invoice payment is being returned. No booking selection is required for this property-level receipt.
- Choose the transaction Money Returned.
- Enter the amount actually received and the receipt date. Select your underlying Trust Account as the bank account and the actual receipt method.
- Add a clear reference to the supplier and original invoice or payment. Check the details and save the entry.
Confirm and check the result
- Find the new entry in Trust Account > Cashbook and the property’s Statement. Check the property, amount and reference.
- Go to Trust Account > Bank Rec > Transaction List (Grouped). Match the receipt to the bank deposit and confirm it using the bank-statement date.
- Complete Daily bank reconciliation and review the property’s resulting funds before the next ordinary disbursement.
Returning money can increase the property’s funds available for disbursement, subject to its other fees, charges and balances. Follow Disburse property funds when the property is ready; the Money Returned entry does not itself pay the owner.
Use the method for the actual receipt
A supplier refund into the bank is a real incoming payment. The paired Balance Transfer method used for a suspense reallocation is a separate procedure.
Common questions
Do I need to create a booking for this money?
No. Record Money Returned against the correct property. Do not create a booking receipt for the same supplier return.
The supplier has promised a refund, but it has not arrived. Can I confirm it?
Confirm only after matching the actual bank receipt. An expected refund does not prove that the bank balance has increased.
What if the original payment or refund used the trading account?
Check the actual bank account and required property treatment before using this procedure. This guide covers a supplier return into the Trust Account.