To reconcile a payment refund from a vendor the refund will first need to be recorded as a credit note. Then, the credit note can be reconciled with the original vendor bill or with the payment, depending on the specific situation.

1.     Record the vendor refund (credit note)

·        From the vendor bill:

If the refund is directly related to a specific vendor bill, open the bill, and click the ‘Credit Note Button’

·        From scratch: (meaning there is no invoice to book the payment against)

If the refund is not directly tied to a specific bill, navigate to Accounting > Vendors > Refunds and create a new refund (credit note) filling in the details of the refund, including the amount and any relevant notes.

2.     Reconcile the credit note:

·        Reconciling with the bill:

If the refund is related to a specific bill, the credit note will automatically be applied to that bill, reducing the outstanding amount.

·        Reconciling with a payment:

If the refund is not directly related to a bill, the credit note will need to be reconciled with the relevant payment. This can be done through the ‘Payments Matching’ tool in Odoo, which allows the credit note to be matched with the original payment.

If the refund is for a different amount than the original payment, the credit note can be reconciled with the corresponding part of the payment and the remaining balance can be written off, if applicable.

3.     Bank statement reconciliation:

·        If the refund involves a bank transaction, the bank statement line will need to be reconciled with the credit note or payment, depending on how the refund was processed.

·        This can be done through the ‘Reconcile’ option in the Accounting menu, where the bank statement line can be matched with the appropriate journal entry.