Those located in Asia-Pacific will use the term Trust Account, where customers located in Europe will use the term Client Account. For the purpose of this article, we will refer to it as a Trust Account. For more information on regional terminology, refer to this article or contact support.
If a supplier or contractor has returned some funds - either an overpayment or for a credit note they have issued - then you will need to raise an expense credit note for those funds, and mark the credit note as paid before you can reconcile those funds within your bank statements.
1. Create a new expense credit note
2. Fill in the 'from' box with the supplier's/contractor's contact name, all other details and make sure the correct ledger is selected for where the funds are being returned to. Save & approve
3. Go into the credit note created, select 'Allocate Credit' from the hamburger menu
4. Select 'Refund' from the next screen and process the payment received
5. Go to your bank statement and reconcile the received amount against the paid expense credit note, which should show as an unpresented deposit