3 Credit Notes and 1 Invoice all in ONE Supplier Payment

[dnph]

Hi,

A supplier has sent me 3 credit notes and 1 invoice, and has paid the net figure with the invoice deducted direct to the bank.

How do I handle this please (as simply as possible, I’m no accountant and doing journals loses me completely)

Thanks. David

[Parker1090]

I think I’ve just about got my head around this… I’ve written this as I was doing it, in a (hopefully) logical way, but someone may know a quicker way than this as I tend to overcomplicate things!

I’ve set up a few dummy invoices for this - 3 x £25.00 (£75 in total), and 1 x £50 (which is the new invoice).

Starting with the 3 x £25 invoices - lets say they were issued in error, but I’ve paid them:

I would go into each invoice, and raise a credit note for each and hold the funds on the suppliers account:

Now the supplier has £75 held for us, as you will see on the supplier view page:

And then we have the new £50 invoice just appear, which we can log as paid from the account credit. To do so, go into the new purchase invoice, and select ‘Log Payment’:

Jumping back a bit to the supplier view again, the account credit would obviously be reduced now to just £25, which would be the net figure appearing the account.

View all payments:

And find the ones with the unallocated balance (because this is a test account, my £25 is actually split over 2 paymens, hence 2 images. Yours could be the same, or could be one payment)

View the details of those specific payments:

And lastly, refund balance, and allocate it to the correct bank account.

Phew!! Got there eventually. What you’ll probably find is it will be over 2 payments as it is with mine, but that’s fine. You’ll also have 2 entries in the bank account for this too (as it would technically be two separate transactions). However, as long as everything balances - your bank account is correct, everything is allocated correctly etc. - then it’s fine.

If you need any further help, please reply

[ian_roberts]

I’d do it with an extra “holding” bank account (call it “combined payments” or similar) as per the second option on this KB article. You’d add the following transactions to the holding account

• money in for each of the credit notes
• money out for the full value of the invoice

The remaining balance on the holding account should match the net amount they actually paid into your current account, so you can tag the current account transaction as a transfer between accounts to balance it all up.