Problem: How to make refund prepayment from Supplier?

Solution: Create a Bank Receipt on the basis of Bank Payment to Supplier.

1. Create Bank Payment to Supplier as prepayment for goods or services:

In a report Statement of Mutual Settlement, you can see it as Advance Paid:

2. To return prepayment from Supplier, create Bank Receipt and choose made Bank Payment as basis:

On the Payment Details tab, add the same Bank Payment as Document:

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