HELP! Microsoft Office Accounting - The Book-keepers Forum (UK)

Andras · Member

HELP! Microsoft Office Accounting

semsley · Guru

Don't know MOA but is there not an option to apply a refund?

Alternatively can you not raise an invoice to the customer for the £300 and post it to a suspense account. Then post the cheque you paid the customer to the suspense account. That will clear the customer account and reconcile the bank.

-- Edited by semsley on Wednesday 6th of October 2010 04:09:02 PM

Andras · Member

Thanks for the reply.

Unfortunately no refund option that I can find.

Also, I have no idea what a suspense account is....

I thought this should be fairly easy.

kjmcculloch · Guru

Why not do a journal entry from the suppliers account to the bank account for the £300?

Kris

Andras · Member

Thanks Kris.

I am not sure you can do journal entries with MOA. It is rather odd. I can't believe Microsoft didn't think of refunds.

kjmcculloch · Guru

No, you can.

Press Ctrl+J, this opens the journal window for a new journal entry.

Put in the date and from the type drop down menu choose supplier. From the Account drop box choose the suppliers name. Then a memo and the amount in the credit column.

On the next row the same date and bank from type. The bank account from account drop box and the memo field. Then the amount in the debit column.

Save and close

Kris

Andras · Member

Kris,

You are saving my sanity. Now the only sticking points are that it is complaining about the voucher number at the very front and how do I treat VAT at the end of the line?

kjmcculloch · Guru

Since you have simply paid too much on account VAT will not be applicable to this transaction.

Both lines should have the same voucher number, just let the system put them in for you.

Andras · Member

Got it! Thank you very much.

PhilMcTankup · Senior Member

Hmmm,

If you have paid too much to the hotel, you have also charged too much to an expense a/c.
The £300 refund should be credited to reduce the expense a/c. Instead, you have credited Creditor (and/or Creditors Control).
Why not just journal a debit to Cr/CC and cr the expense? Or raise a cr note to Creditor applying cr to expense?

I don't think the cr should go to bank, what will you reconcile it to?

Am I missing something - am all studied out so could be

Phil

-- Edited by PhilMcTankup on Wednesday 6th of October 2010 05:33:45 PM

Andras · Member

The prepayment was just out of the bank account not against any invoice. It seems fitting to feed it back into the bank account.

-- Edited by Andras on Wednesday 6th of October 2010 06:06:54 PM

kjmcculloch · Guru

You're partly right Phil. The Cr shouldn't go to the bank, it should go to the suppliers account, the Dr should go to the bank.

Remember to increase an asset we debit.

But there's no need to touch any expense account as no expense account was touched in the original transaction.

Kris

PhilMcTankup · Senior Member

I'm savvy with principles of basic double entry, just not happy that I understand what has gone on here.
Creditor a/c's don't have permanent balances. Costs should be charged to an expense a/c, maybe that's what Andras meant by Hotel a/c in his original post. If December posts were before his year end then if he applies £300 chq to cr expense now, then it will have a Cr bal but that's ok.

kjmcculloch · Guru

As I understand it. The cheque was a prepayment that was overpaid to a creditor. It was never applied to an expense. The creditor has returned the amount which was overpaid.

I don't see, in this instance, why you would do anything with an expense account.

Kris