UK Payment Received - Record Transaction

[davidlee]

Hi,

I need some help on the best way to record the following transaction:

We make direct debit payments to a company for life insurance, £100 a month for a manager. He has now left the Company and didn't manage to cancel his policy in time, so he has now refunded the £100 to use via bank transfer. I wanted to know how I would now record this transaction please? Do I have to create a credit note against the supplier, then post the payment against this? Or is it enough just to balance the payments themselves?

I use Sage50.

Thanks!

 

[kirby]

Do not offset the payments against themselves. Record an entry showing the payment to the insurance company and an entry for the refund to you as dr cash and cr insurance expense.

 

[davidlee]

Do not offset the payments against themselves. Record an entry showing the payment to the insurance company and an entry for the refund to you as dr cash and cr insurance expense.

Thank you!