I had a customer who overpaid so I allocated as a payment on account. I found out that the customer no longer exists so I posted an invoice to the suspense account to clear the customer account? Not sure if this was the right thing to do? I think I need to clear the suspense account for year end but am unsure how I allocate this. I am using Sage Instant. Can anyone help please?
Hi Jules, I am confused as to why this is on the suspense account at all? Do you not have a write off account? I believe the overpayment should have gone onto the customers account, but as they no longer exist, I am presuming you don't want a credit balance on there? This can just then be written off to the write off account. An invoice should not be raised, unless that invoice actually exists. What information did you put on the invoice?
Anybody with a better answer, please feel free to correct me if I'm wrong!
Thank you. I have restored so the money is back on the customers account. I have bad debt write off (8100), but this is money we owe to them so not a bad debt, but yes it could be a write off. I am getting myself confused here. How would you transfer this money to the write off account from the customer account? I can't see how a journal would work? The payment on account has already been processed through the bank and reconciled in a previous period. What would your entry be please?
