I have a client who owed some money to a supplier but was in dispute with them over faulty goods that he had to go back and change and refit them. He made a claim to the supplier and invoiced them accordingly. After a few months they agreed with his claim and said to deduct it of the money owed so in affect its a credit. We have a statement to show the credit on it of said amount. So my question is using his invoice do a raise a credit on the suppliers account and then deduct as normal when paying the invoice ( I am on QB)? I originally entered his invoice to them (supplier) on QB but then realised the payment hadn't actually gone through the bank as they are going to deduct of the money he owes them.
Is this the best way of dealing with it. Along with his invoice to them claiming for his Labour and new materials is a letter making the claim to back up his invoice. So all above board etc.
Hi Pauline, The current state is I have plenty of invoices on the P-ledger as he refused to pay the supplier until the dispute was sorted out with is is now. They have issued him a letter to confirm that they are going to pay his invoice and they have put it as a credit on his account, I have seen the statement also to confirm this. I haven't put his invoice to them on QB's yet because techically they haven't paid it as they have deducted this amount off of what he owes them. Also just to say he is VAT reg and also CASH accounting. Hence why in QB I was going to use his invoice as a credit on theh P-ledger as thats what the supplier has done on theres.
Hope that makes sense, not sure if I have explained it very well.
Many thanks
-- Edited by Amanda on Thursday 26th of January 2012 08:08:36 PM
What is the current state of your ledgers? Do you have an invoice on a supplier account and an invoice on a customer account and you need to know how to deal with the contra situation?
If you haven't entered it onto QB yet then I would just enter it as a credit on the supplier account so their statement balances. If it is already entered as a contra entry in the sales ledger then I would do a journal entry.
