[Solved] How do I create a creditor balance for a Membership balance paid twice and refunded?

The scenario is that a member has accidentally paid their membership fees twice in January. Instead of holding this additional payment on-account for the next renewal, the member requested a refund which you paid through the bank in February. This means during January you would need to show this as a creditor in your accounts.

So how should you deal with this situation?

Option 1: If you have already recorded the February refund payment in your accounts, you simply need to:

1. Create a new Negative Receipt transaction against your Creditor account in January - select the same Date and Cost Code that you used for recording the duplicate receipt, but enter the amount as a negative value
   => This will cancel out the duplicate Receipt in your January P&L (you don't want to report this as income) and create a creditor balance in your Balance Sheet/SOAL.
2. In February, repeat the above using the refund Date and Cost Code - but this time enter the amount as a positive value
   => This will cancel out the refund Payment in your February P&L and clear the creditor balance in your Balance Sheet/SOAL.

Option 2: If you have not yet recorded the February refund payment:

1. As per Option 1
2. When the duplicate payment is refunded in February, create an Account Transfer:
   • Use the refund Date and Amount 
   • From the Bank account (where the refund was paid)
   • To the Creditor account
     => Account Transfers do not appear in your P&L (you do not want to record this as an expense); but will clear the Creditor balance and reduce your Bank account balance in your Balance Sheet/SOAL.