My client received some funds that were not invoiced for and we found out were paid in error to them. The original receipt into the Bank was processed as a (Sales) payment on Account. We invoice this customer a lot and receive lots of payments into the Bank.
It took a couple of months but my client have now issued a cheque to repay the funds, which has been processed through the Bank account.
How do I process the cheque and match it to the Sales Payment on Account? I use Sage. (Complete Idiots guide please as today I am being an idiot, clearly!!!)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
You can process a Customer refund. Go to the Customer menu and in the Tasks panel on the left select customer refund. Select the customer and the payment on account will appear in the window. Enter the date and the amount of the refund in the refund column and click on save. The process varies slightly with your version of Sage, but the idea is the same
If you are on cash accounting for VAT and chose the 20% rate when posting the payment on account you will have to choose the same rate when posting the refund.
