I have a client that does some work in the Far East. I invoice in sterling (eg £800) as agreed by the client, when the funds arrive in the UK the payment is £15 lighter than the invoice. The Bank here do not charge anything for receipt of this money, but I know from my Banking experience that the Far Eastern Bank will have charged for making the Payment Abroad but I dont have a piece of paper to prove that.
I will post £15 to Bank charges but am not sure how to actually key it within Sage.
The invoice payment of £785 I will allocate against the invoice £800, but how do I clear the remaining £15 from the invoice and then pass to Bank charges? Full idiots guide required as usual please (although I am learning lots daily, honest guv'nor!)
Thanks in advance
Cheshire
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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
I would just enter a Bank receipt of £800 (or a Customer receipt if you have entered the sales invoice onto the sales ledger), and also a Bank payment of £15, coded to Bank Charges (7901), T9. The two together come to £785.00, which is what you have received.
I'm not saying it's the right way to do it, but that's what I'd do (you could add a note to the receipt as to what you've done)
After paying off the invoice with the £785 as a customer receipt as normal you will be left with £15 on the customer account as you stated. I would then do a dummy credit note (through the batch invoice option - Customer - Invoice) and for the nominal code use the bank charges code with a T9 tax code. This will credit the debtor's control account and debit the bank charges account. You will then need to go to Bank - Customer, chose the relevant customer and pay in full against the credit note and the remaining part of the invoice. This will clear the customer's account.
This is the way I would do it if you have an amount left on the customer's account.
