I am using Sage instant accounts and have a problem with two customer accounts, one has a credit balance and the other has an outstanding balance. The reason is because one company bought out part of the other, and a recepit was made and entered into the wrong company account in the last financial year before I started with the company.
What is the best way to transfer the balance from one account to the other so both accounts show the correct outstanding amounts. Because it was in the last financial year I can't just do a correction (can I?) Any help please?
The thing which potentially complicates this is VAT, but ignoring that for the moment:
If you simply put an invoice and credit note through on the two accounts, that should cancel. Post both against the same place. Date both the same. If VAT registered, enter as T9.
The only complication I can think of is if you account for VAT under cash accounting, which would affect the receipt you entered against which you had no invoice.
Thanks for the reply Nick, I was wondering about doing it this way and using the suspence account nominal, but wasn't sure if they would still show up in the statements, I'll do a back up first then try it and see how it turns out. We're standard VAT accounting, so that should be ok.
