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Adding a credit to a supplier from previous accounts

I have just started using Quickfile. In the past our accounts were always on paper. Have pretty much sorted everything we need to but we’re having trouble adding suppliers with credits.

For example: We pay £100 a month direct debit to Ecotricity for our energy supply. We tag the bank transaction as a prepayment and this works fine. The problem is however, we have a credit balance with them for several hundred pounds - i can’t figure out how to add this balance without taking it from somewhere else and negative opening balances are not allowed.

I saw one post says to create a bank account called “previous opening balances” or some such. But i thought this might throw things out in the long run.

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Hi @scoobeski

You are able to add an opening balance when you enter the supplier. Take a look at this article:
http://community.quickfile.co.uk/t/add-a-new-supplier/8815#3

If you need further help, please let me know! :smile:

Yes I’ve seen that but that only adds a opening balance that is owing? I’m talking about a prepayment opening balance. Our electricity supplier tales money in advance each month and bills us quarterly. There is always an amount left with them to cover bigger winter bills etc

Oops! Apologies for that!

Let me check on this and come back to you.

You would typically enter the prepayment for that supplier so that it predates your bank opening balance. You would then need to adjust this amount out out the opening balance in the bank settings.

e.g.

You are setting your bank opening balances on QF for 1/12/2015, your current account open balance is £1000. At this point in time you have a credit balance with Ecotricity for £100. You would then enter a debit on your bank for £100 on 30/11/2015 (one day before the OB), then adjust the Opening balance up to £1,100.

Ahh I see. Very sneaky :wink: That worked a treat! Thanks for that!

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Been using the above method and this seems to be doing the trick. however, the prepayments are added to the VAT report. But not being assigned to an invoice should not be VAT applicable. Can you tell me how i can stop this happening?

On cash accounting HMRC require VAT to be declared on prepayments, even if they are not allocated to an invoice.

You can override this when entering the prepayment, although this should only usually be applied to cases where the supplier will eventually issue VAT exempt or zero rated invoices.

Oh ok. Didn’t know that. So will quickfile adjust the VAT for when the prepayment money is later used or refunded?

Yes it will automatically adjust.

Thank you Glenn for your reply and suggestion. I have entered all the opening balances when I switched to Quickfile except for the balance in the creditors control account. I wanted to break down this creditors control account balance and enter in individual ledgers so that when we receive the invoices from the suppliers we can enter these invoices to cancel the debit brought forward balances and also will be able to claim the VAT in the forthcoming quarter. But what you have suggsted to me may not work.

Am I right.
Kind regards
Thambirajah

Hi,

You can set opening balances for your clients - this may work better for you if you want to keep track on a per client basis.

Enter client opening balances after a client has been created

Opening Balances / Client Invoices

the above threads may also help

Hello
I am not sure how this works, as the opening balance I have is correct.
why do I need to then adjust opening balance, and how, as it doesn’t look like letting me!
Thanks

Hi @Saws

Which part are you unsure about? Is it a prepayment or an outstanding balance you’re looking at add for a supplier?