Hi wonder if anyone can help have had a look through the forum but cant see any posts similar to the problem I am encountering.
I have a problem with tagging my supplier accounts which give a months credit.
The problem is if I purchase a item in Say March and then return it the following month April for a credit then the invoice and credit note are in different months, I prefer to down load my bank statements and tag the enteries with the appropriate invoices to balance out the payment, the problem arises when inserting my invoices into purchases I assign a credit note to the invoice it is related to but when I try to tag the payment in the bank it has a imbalance in both months due to the invoice and credit note being in different months.
I would like to keep the original bank statement entry rather than assign payments in the purchase management screen and deleting the original bank entry so the bank statement on Quickfile is the same as my hard copy so there is no confusion but can’t see a way past this problem.
I just want to clarify the issue here to make sure I can advise in the best way possible.
Your supplier invoices you (let’s use your example of March), but you return part of this invoice and receive a credit of in April.
When the next invoice comes in, you’re assigning the credit to the invoice which leaves an outstanding balance. But you’re having trouble then tagging the remaining balance of the invoice from the bank statement.
Hi Mathew
Its hard to explain this on email and maybe I can explain it better by putting numbers to it.
The problem is only with credit accounts I have with two suppliers that are paid a month in arrears so all my invoices for march are paid near the end of April.
If i buy two items on 29th March worth £20 and return one of them on 10th of april I enter the full invoice in quickfile on the 29th of March but when I get the credit for 10th April I go back to the entry for 29th of March and assign a credit to it for £10 that is dated 10th April (which I believe that is the way it should be done) which brings the balance down to £10 for that invoice.
BUT when I come to pay my March statement at the end of April I didn’t bother deducting the £10 of it for the credit because I knew that it would be deducted of the April statement.
But when I down load my bank statement into Quickfile and try to tag the payment with all the March invoices I have £10 not assigned to anything (in other words a over payment) because I have assigned a credit note to one of the invoices that won’t take affect till I pay my April statement.
Same when I pay my April statement but this time there will be a under payment of £10 on my bank entry, Ideally what I would like to do is assign the credit note to the March bank payment but I can’t because it is dated in April and attached to a March invoice.I’ve also used March and April as a example as it can screw up my end of year balances. The problem doesn’t arise if I make the purchase and credit in the same month.
I don’t think there is easy answer to this so I think I will just have to delete the original bank entry and make a group payment through Purchase Management which would do away with these in-balances unless you can suggest a better way to deal with it any advice gratefully receive.
Ok, thanks for adding the numbers in there - I think that makes sense!
From what I understand, in effect, you’re paying an invoice in full, regardless of a credit being applied or not, which can result in an overpayment in future payments.
The good news is, this is certainly possible, and I’ll try and walk you through it - using the same example as you’ve used there.
Create the first invoice - 29th March
Start off with the full £20.00 invoice for the 2 items:
Record the return - 10th April
As per your example, 10th April, I return one of the items, resulting in a £10.00 credit. I’ve recorded this as a credit note, reducing the balance to just £10:
Paying £20 to this invoice
With the £20, you need to tag this slightly different to normal. As you’ve probably noticed, it doesn’t appear on the outstanding invoice list. This is where you click ‘Pay down multiple invoices’:
From here, you would find the invoice, and then record the rest on the account:
The unallocated £10.00 will appear as a ‘prepayment’ on the supplier view:
April’s invoice
When it comes to April’s invoice, you will need to use that credit first. Create the invoice, and use the ‘Log Payment’ button to record a payment “From Credit”:
