We have collected goods from a customer for disposal, which we then pass along to a disposal company. The disposal company pays us for the value of the goods, a portion of which we pass back to the customer. In the past, customers have just invoiced us the amount to be refunded but in this case the customer has asked for the credit to be applied to future invoices. So how do I account for this? I can’t create a credit note or a prepayment for the customer without associating it with a bank transaction, but the only bank transaction is already tied to the disposal company.
Hello @ddeslauriers
To apply a credit to use for future invoices would be applied as a prepayment.
The double entry on this transaction would affect the debtors account (client account) and a bank account.
You could treat the disposal company as a merchant account if you do not wish to affect the actual bank account
https://support.quickfile.co.uk/t/handling-payments-from-merchant-accounts/8865
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