Can someone advise me on the following: when posting cheques to suppliers and there is a credit note sitting in the account do you allocate the credit note to the invoices using the wizard and then save, go back in then allocate the cheque amount to the remaining invoices using the automatic button, even though you are given specific invoices numbers that the cheque is paying???
I never use wizards. If a credit note is allocated to a specific invoice I would match the the credit note off using Pay In Full and Pay in Full all the other specific invoice numbers the cheque is paying.
I agree with selmsley , go into pay supplier and pay the credit in full this will act as a payment and then pay the invoice in full the net amount will be the figure that appears at the bottom of the payment window, this is what you should of paid, if you inadvertantly paid the full amount you will be left with a payment on account that will work as a credit on your next invoice.
-- Edited by Rhianrach on Tuesday 7th of September 2010 06:18:57 PM
I think i'm getting confused!! If I have a cheque being paid to 2 specific invoices can I allocate them first paying in full, then go back into the account and allocate the credit to the remaining invoice the invoice is for £411.00 credit £58.00 leaving me an outstanding balance then on the activity report of £353.00, if I allocate the credit first it is automatically taken off the first invoice which I have the cheque allocated too or does this not really matter as long as the end result is correct in the activity report??
Are you doing some sort of exercise? If so and you have a cheque which specifies it pays specific invoices then you pay in full those invoices and as Sue said leave the credit.
In real life you would issue the cheque to the supplier to pay the two invoices less the credit note and pay the whole lot of them off in full.
yes this is an exercise, i'm just re-freshing my memory before I take the plunge and start advertising, the course teaches you differently but it makes more sense to pay off the specific invoices and leave the credit note until it is required. Thank you!!
-- Edited by Lisa68 on Wednesday 8th of September 2010 09:07:36 PM
There will be times when a credit note is issued way after the original invoice has been paid. In this case, you choose which invoice you are going to net this off against. It really does not matter.
If the invoice that the credit note relates to is still on the purchase ledger as unpaid, then its straightforward, you choose the credit and click on the Pay In Full button and then do the same for the invoices that you'll be paying. You should then end up with the net payment to be made to the supplier.
Keep and eye on Sage, sometimes when you select a credit note and click on Pay In Full and then go and select the invoices to be paid, Sage can sometimes automatically net down one of the invoices.
If I have a cheque being paid to 2 specific invoices can I allocate them first paying in full, then go back into the account and allocate the credit to the remaining invoice the invoice is for £411.00 credit £58.00 leaving me an outstanding balance then on the activity report of £353.00, if I allocate the credit first it is automatically taken off the first invoice which I have the cheque allocated too or does this not really matter as long as the end result is correct in the activity report??
