Supplier Refund Accounting

[Regenbui]

Hi All,

I can't seem to grasp the following, so I hope you can help me out. Assume I've created an invoice (AP) of 100 eur and i've paid the invoice. It turns out the goods arn't 100 eur, but 80 eur (supplier made a mistake).

<b>This is what I would do/think is right:</b>
Normally (I would say) I create a credit memo, match it to the invoice (so i've got the right distributions). The accounting entries are offset in payables for the amount of 20 eur. DONE

My question: I recieve the refund/difference of 20 eur in my account (using cash managment). I would say cash managment creates a receipt of 20 eur, but with what would I match this receipt? Or should I have cash managment match this 20 eur in my account with the credit memo/invoice?

Am I partly right, or should I take other steps