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Thank you again for the help..
Regards
1 10/15/2013 02:37:53 pm
Re: How to enter a payment for a credit note? (20 replies, posted in Accounts Payable)
2 10/15/2013 01:48:32 pm
Re: How to enter a payment for a credit note? (20 replies, posted in Accounts Payable)
Hi Elax,
Thanks for the reply,
Just for clarity and to document for others.
1) I do the credit note to effectively reverse out the original invoice against the gl line items tax etc.
2) Raise a bank deposit against the receiving bank and 2100, by selecting supplier and select the supplier from list.
3) Go supplier credit note/payment allocations and allocate the credit note against the bank payment.
Have I got it right now ??
Best Regards
I too thought that if I did the credit note, then chose the supplier entered the deposit against 2100.
What I didn't realise is that if I did the Bank Deposit it would appear in the allocations/payments screen and I could allocate the credit to the Bank Payment.
3 10/15/2013 11:49:24 am
Re: How to enter a payment for a credit note? (20 replies, posted in Accounts Payable)
Hi everyone,
Can anyone help with confirmation of the correct process for what I believe is the same question above.
I am unsure of the response that has been given.
If I raise a Supplier Invoice from a supplier for services etc,
The invoice has two elements:-
One for the actual service say - Cost of goods sold @ £100.00 (say - GL 5010)
and one for the VAT (Tax) Element say @ 20% = £20.00 (say - GL 2150)
Total Invoice value allocated to GL Accounts Payable (Creditors) 2100
I then pay the invoice using supplier payments and thus the corresponding entry from GL Account 2100 and Bank Account used to pay the invoice - all good.
If i then get a refund direct into my bank, say some time later following week:
I use the Bank Deposits select the supplier and deposit the money from the supplier into the bank account, the
corresponding GL entry is against GL 2100
At this point the suppliers account balance is correct and so is the bank, but there has been no entry against the Tax account or the cost of goods sold account.
So this would cause an inaccurate VAT (Tax Return), And Profit and Loss as the Cost Of Goods Sold will also be out.
Also blowing the TAX Reports.
Surly the correct action is to raise a credit not to duplicate the invoice detail, then offset the credit not either against other outstanding invoices or post as a refund back into the bank.
For this the payments to suppliers would need to be payments/refunds to suppliers and the process should allow for a credit note to be allocated back to the bank.
The reason I ask, is I have this exact problem now, normally all supplier credit notes are just offset against the supplier balance and thus only the difference is paid from the bank. But the supplier I have is not one to be used on a regular basis and has refunded money into the account instead.
The original invoice was in the prior VAT (Tax Quarter) and even though the supplier AND bank are now in balance the VAT (Tax) and PL (Cost of goods is now incorrect.
Any help would be appreciated....