I have started doing book keeping privately and the girl who used to do it before me has paid off the suppliers as a "payment on account" - therefore not really showing exactly what is paid off and what isnt.. now there is confusion from one of the suppliers about that is paid off and what isnt. our accounts arent matching up. Is there any way i can pay them off without muckin up the account??!!! I would appreciate any advice.
Hi there, first of all I would ask the supplier for their statement of account and see how they have allocated your monies, also you should have invoices that relate to the payment on account check the paperwork, all PA does is post a payment to the bank code. You can match them off but you have to be really careful that when you do the amount = zero or you will post another payment to the bank for example if you have a PA of £100 and an invoice of £200 and pay them both off then another £100 will be posted to the bank account. Hope this helps, tricky position, also were the PA just small differences that she could not allocate!!
