As I was doing a bank rec the other day for someone I noticed the amount credited to my clients bank account was different to the amount entered on the invoice for the services supplied for June. I have gone back to the original invoice and an error has been made when the subtotal and vat were added and the customer has overpaid by about £35.00.
A credit note has now been issued to the customer against his invoice for September.
I have checked what I entered into Sage Instant Accounts for the June invoice and Sage has obviously put the correct amount in.
Could someone help with what procedure to undertake to correct the books. I have now entered the credit note into Sage but that will mean that my books are going to be down by £35.00 and the paperwork will not tally with what I have on Sage.
I don' think you needed to post a credit note in your books as your Sage was all ok.
I would have just processed the correct amount from the bank receipt to clear customer invoice balance then done bank payment back to customer for the excess he paid and sent ltr with chq to explain. He would then apply it as credit to your supplier account in his books. Done with T9 in your books as you have processed correct net and VAT already. Your customer would post using T2 (exempt) so would adjust total in box 7 on his VAT return which was overstated before.
Could someone else offer a second opinion on this?
Phil
-- Edited by PhilMcTankup on Monday 4th of October 2010 01:23:57 PM
Just been checking out in Sage. Best action is to apply chq in full to supplier acc, allowing excess to be posted as payment on account. Then use Supplier Refund function to pay the excess back.
You now need to use Corrections to delete the credit note then use supplier refund as above.
Phil I don't think the supplier refund is available on Instant.
What needs to be done is to create a credit note and post it to either mispostings or suspense account then pay it off from the bank to the misposting/suspense account,
Thank you for your input so far but I am a still confused!
In my 'Customer receipts - bank payment window' I have: - 1) a june invoice entered which is for £35.00 less than it should be 2) a September invoice which is for £35.00 more than the cheque will be for when he receives payment 3) and a credit note for £35.00.
How do I deal with these from here when it comes to reconciling the Bank a/c. I have checked and I do have refund facility. Or do I need to do some corrections and start again.
Sorry but would appreciate a bit more advice.
-- Edited by Sozzybobs on Tuesday 5th of October 2010 11:43:44 AM
