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Post Info TOPIC: entering a sales credit against purchase invoices?
darlby


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entering a sales credit against purchase invoices?
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I'm about to pay a supplier, however I notice that I have a sales credit for them with no sales invoices to allocate it against. Can I take this as a contra and if so how do I enter this in sage line 50?



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FoxAccountancyServices


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Hi there

Would you be a little clearer here.. is this supplier also a customer?

Sales credits are invoices you issue to credit a sales invoice - to your customers

Purchase credits are what the supplier issues to you to reduce what you owe them.

If you meant purchase credits, have you had a supplier statement? Or, can you verify that:

The original invoice was paid and so this credit is to contra against any other invoice?

Or if

The original invoice has ever been entered onto sage



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darlby


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I have a supplier and customer account for the one company.
I have a sales credit on the customer side.
I have purchase invoices on the supplier side.
I don't have any sales invoices to apply the credit too.
If I pay them the amount of the sales credit with the total of purchase invoices due, how do I enter this in sage?

Do I need to put dummy invoices/credits in and a journal entry to pick all this up so the accounts balance?

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Shamus


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Whilst one would hypatetically be within their rights to do this, ensure that you have the clients (and the clients suppliers) agreement before offsetting balances as such does not fit well with some businesses internal control systems.

I'll leave it for others to give you the instructions for how to do this in Sage.



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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
FoxAccountancyServices


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Use a dummy bank account to clear each side off - this should leave you with an overdrawn balance that equates to the cheque/bank payment made. Then you can do a bank transfer from 1200 to the dummy account.

This relies on your sage having a "customer refund" task in the customer process menu





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