Ive got myself into a bit of a pickle again. I invoiced a customer an amount of £1488.00 inc vat. He paid with cash. I stupidly just banked the notes and forgot to bank the £3.00 in change. I have paid the invoice on sage without realising stating he had paid the full amount but it was actually £3 less that was banked. Now when i try and do the bank rec on sage the bank says i paid in £3.00 less than what the invoice comes to. So i cant allocate the payment off? I have tried to ammend the invoice but it wont let me as already paid on sage?
Does anyone know what would be the best way to resolve this as i cant complete my bank rec for August now?
What did you do with the £3? There's a few ways to deal with this?
1. If you still have the £3, put it in the petty cash tin and post a transfer from the current account to petty cash 2. You can post a refund on the customer account for £3 to the current account and allocate the receipt and refund against each other on the bank rec. 3. When you bank the £3 post to the customer account and allocate against the refund. 4. If you spent it on e.g stamps - post a payment from the bank account to the correct nominal code
hth.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Dont worry its simple to solve. Ive done this myself before. If it was me I wouldnt waste anytime on it, for such a small amount simply click on the adjustment button on the reconciliation screen and put through a £3 entry into your drawings! Thats it really! If you have taken the £3 then treat it as drawings. Also your sage balance will then match your bank balance. Simples!
Thanks Tony. Yes i still have the £3.00. Ok i will post the £3.00 as a customer refund then bank the £3.00 and allocate it against the refund on the account.
You can only post it to drawings if the business is a sole trader or partnership. But then you'd have to give the money to an owner?
It's straightforward to post a refund in sage (the option is on the customer tab). Imho, it's far better to learn how to correct errors than to work around the problem. But - others may disagree.
Becky, I wouldn't get hung up about posting errors. I wish I had £1 for every time I've done it
-- Edited by ADAS on Tuesday 27th of September 2011 01:27:32 PM
__________________
Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Yeah i think i would be more confused posting to the drawings account so think i will stick to what you said about posting a refund. I think you are right i would rather learn how to rectify the problem in-case it happens again but hopefully it wont haha!
Thanks for your advice Tony I will try not to worry about the little errors in future!
Thank you. Yes i could just bank the cash (which i plan to do) but i am wanting to close down the August bank rec and because we are now in September it wont show up until Septembers statement. : )
Sorry i was assuming it was your business, thats what i based my advice on. If its a case were you are acting for a client I would just lodge the money.
In regards to your reconciliation I would simply just make the adjustment through the suspense account. Make a payment to the suspense account, that reduces your balance down, reconcile your month and then for the following just make a receipt to the suspense account to clear it off.
Yes, you could a bank payment for £3 against suspense dated Aug and then a bank receipt for £3 against suspense when actually banked bank it (Sept?) Or, you could delete the erroneous customer receipt in Sage and put it in again for the amount actually banked (of £3 less) and then put in another customer receipt for the £3 with a Sept date.
Either way would let you do a bank rec for August and your customer account would eventually be correct (with method 2, the customer statement as at end of August would look a little odd, with the o/s £3)
(Edit - Pedantically, possibly, the most correct way would be to delete the erroneous customer receipt in Sage, then put in a customer receipt for the amount actually banked, and put in a customer receipt for £3 (with the same date as the rest of the receipt) but put it into Petty Cash (rather than the bank account code). Then, when you banked the £3, do a bank transfer in Sage for the £3 from Petty Cash account to the bank account.)
(It's a shame it crosses a month, but its such a small amount, I think any would be ok, depending on your preference :)
-- Edited by Figurate on Tuesday 27th of September 2011 07:39:40 PM
Or alternatively you could just leave the £3 as an unpresented item on the bank rec....especially if you are planning on banking it anyway. By far the easiest way.
LOL, I think she's having problems because she's already got, say £300 as a bank receipt in the bank account on Sage, as one figure, and there's only £297 on the bank statement... so she can't "select" only £297 to reconcile, in the Sage "bank reconciliation" window, but she wants to reconcile to the end of Aug.
(if that made any kind of sense at all... I'm obviously thinking about this way too much, especially considering the sum involved )
