How should I "pay" a credit note I have received from a supplier? It shows as "due"...

Hello Greg,

As an example let's say the bill was for £300 and the credit note for £200, so you'd be paying your accountant a net amount of £100.

Here's what you need to do:

1) Record payment in full (i.e. £300) for the bill. If you're entering your bank transactions manually then put the amount in as £300. If you're explaining your bank transactions from an upload, then when you explain the payment of £100, change the amount of the transaction to £300 so that it fully pays off the bill.

2) Record a full refund (i.e. £200) for the credit note. If you're explaining your bank transactions, then FreeAgent will automatically have put in an extra Money In transaction of £200 when you changed the amount of the payment at step 1. Explain this transaction as Bill Refund and choose the credit note from the drop-down list of bills.

That should then clear everything off. The bank will show a net payment of £100 and both the bill and the credit note will show marked as paid.

Does that help, please?

Kind regards,

Emily