I received an invoice for truck hire. On the invoice, the cost is 3000.00 + VAT and 1000 deposit.
Deposit will be refunded after truck will be a pass back to the supplier. Deposit cover physical damages to the truck.
The question is: Where post deposit from invoice? How to allocate this on account to reflect that deposit is awaiting refund.
The invoice will be matched with payment to the supplier but after the refund will be done there will be the negative amount on creditors account. I can raise an internal document to match it with a refund but how to do it without this.
We don't have code for deposits.
Should I create nominal for deposit or simply post as to P&L, paid an invoice and then create an internal document to match it with a refund?
Thanks
I am very newbie so thanks for quick answer.
Apologies, I was under the impression this was your own business, so you were given a vague answer and a hint to check with your accountant.
As Joanne says, it doesn't hit the P&L at all. I had my first one last week for tool hire and I posted it to the supplier.
Post your purchase in the normal way, but allocate £3000 to the normal nominal for this type of transaction and £1000 to the supplier
When you pay the supplier the £4000 your software will indicate that £1000 is outstanding from the supplier and when this is refunded the balance will be zero. (assuming no other transactions)
I've attached a screen shot which hopefully explains it better.
If you try to post it as a "pay supplier" transaction will it let you record it without allocating to an invoice (it's been a while since I used QB)? If it does then do that which will result in a minus balance of £1000 on the account, and then when it's refunded you can allocate the refund against it to cancel out. Failing that, you could record it as a bank payment outside the supplier ledger (think QB calls it a "spend money" transaction) to the "other debtors" nominal code, and when the refund comes in post it as a "receive money" transaction to the same nominal code.
Hi Luke
Please do not forget to say thanks to posters such as John and Faye as this ensures you contnue to get help in the future. Hope they have helped, but if you are still unsure then shout out.
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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
