Hi all, I'm hoping someone can help! I have recently taken on a new client (limited co) who was in a bit of a mess with his accounts, and I have had to enter his accounts from day 1, which was Nov 2010, for the financial year to Oct 2011. All done, and sent off to the accountants last week to do the (late) year-end. I have now managed to retrieve paperwork from his previous bookkeper (of sorts) so I can start the accounts for Nov 2011 - present. However, I have now come across a remittance advice for a payment received in October 2011, which it appears I have allocated to the wrong supplier and invoice due to a lack of paperwork! So, I am wondering, as the year's accounts are finalised and year-end processed, how I can correct this, so the invoice I have allocated to is outstanding again, and the payment is allocated to the correct customer. The payment for the incorrectly allocated invoice was received in December 2011 so I can enter this as normal, but need an invoice to allocate it to! I know I can't go back, so I'm presuming some kind of journal entry is needed, but can't work out how I would do it! To complicate things more, the payment received was part cash, part cheque, so I need to undo both bits. I'm working on Sage, so can't unallocate the invoice from the payment. Any help would be much appreciated!
My way (and most likely not the correct way) would be to do two credits to the customer account that did pay you, make one the amount of cash and one the amount of the cheque, then re-invoice the customer account that was allocated payments in error, date these at the beginning of this financial year and leave a note for the accountant when you submit this years books, explaining what you have done and why. There would be no reason that anything from an accounting point of view should be out of sync, it appears to be a purely bookkeeping issue, but it's always good to let them know.
Thanks Steve, that sounds like it would work in terms of re-invoicing the customer who hasn't yet paid. With regards to the bank account, I suppose if I did a refund to the customer (on sage only, not in real terms!) and brought in the funds again, both dated this financial year, I could then allocate them to the right customer, and this would balance on Sage in terms of the bank reconciliation.
