I need some instructions on how to record a payment made to a supplier against an invoice that was raised by them against another company!
Unfortunately the wrong invoice became stuck to the back of a correct invoice and I did not see the address on this before going into my on-line bank account and paying the wrong invoice. At this stage I had entered the wrong invoice into Sage but had luckily not recorded the bank supplier payment against it. My supplier rang to say I had paid them the wrong amount so we checked and found the wrong invoice in the file. My supplier immediately refunded this into my bank account.
I have now amended the incorrect invoice in Sage using the maintenance screens and have paid it off in Sage - AND have paid the correct amount through my online bank account to my supplier. All this is now OK - but...
Question: What do I enter into Sage to reflect the incorrect bank payment payment and the subsequent refund which shows on my bank statements?
If the incorrect bank payment and the subsequent refund happened in the same month and your supplier account is correct, I would be inclined not to post either as they will cancel each other out on the bank statement.
If however you want an audit trail of what has happened then you could just post them as a bank payment to the suspense account with T9 tax code (assuming you are VAT registered) with a relevant description and then a bank receipt to the suspense account with T9 tax code. This will then zero the suspense account and will appear twice on the bank reconciliation screen and will also cancel each other out.
