Credit Note opening balance

Our electricity company has credited all last year’s bills and issued new ones. Last year’s bills are in Sage. I can’t create my elec company with a negative opening balance. I can’t create a credit note that will sit like a pre-payment on the supplier. If I create a credit note it allocates it to the bank as a refund - which it isn’t.

How do I show this credit on the account?

Hi @WalkerTim,

You could create a credit note and have the refund allocated to a holding bank account. However when you say last years bills are in Sage, do you mean that you had a balance outstanding when you moved over to QuickFile? In which case you could create an opening balance invoice on the account and then credit this with the new credit notes you have been issued?

I have also found this posted previously. You may find it useful: Credit balance on supplier account

There was no opening balance, all billed and all paid for. The supplier has issued credit notes and new bills which leaves us in credit.

Could I create a 1p invoice and then put the CN against this 1p invoice? I’ve posted and deleted so many entries trying to get this to work, I’d rather not try any more experiments.

Hi @WalkerTim,

You can’t process a credit note within QuickFile without it being against an invoice or there being a bank entry for the refund. There is a guide here which hopefully will help: Enter opening Credit Notes without depositing to the bank

Basically you need to set up a holding bank account to keep the credit

That means I have a holding account for cheques, a holding account for contra payments and a holding account for EU reverse tax and then another holding account for credit notes … is this software functioning … I think not!

Hi @WalkerTim

I’m sorry you feel that way. Although it’s worth noting that some of the holding accounts you have setup are optional (cheques for example), but appreciate it that setups vary from business to business.

You could in theory use an existing bank account. My colleague gives an example of this here: Adding a credit to a supplier from previous accounts

Another post that may be of interest, is this one here: Enter opening Credit Notes without depositing to the bank

I hope this helps.

OK - If I use the Opening Bank Balance, my concern is that if this occurs again later down the line can I adjust the opening balance multiple times?

Secondly, to “enter a debit on the bank” - am I right in thinking that in Bank, “Input new Transaction” and date it before the start of this year (eg 1-1-19)? Have I missed anything crucial? Will this affect any accounting elements I am unaware of?

Also - how do I then link that Prepayment Bank line to the supplier?

If I use the CREDIT HOLDING Bank Acc, is this the right process?

Create the Holding Account.
In supplier, create a prepayment from the holding account.
When an invoice arrives, do I pay it from the holding account? Are there any transfers between bank accounts then required? I can’t get my head around this.

QuickFile does allow you to create an “ad hoc” credit note by creating a purchase with a negative value, but it won’t (directly) allow you to hold this as credit on account for use against future purchases. However you can do it indirectly:

  • Create a negative-value purchase and refund it to a dummy bank account (e.g. director’s loan or drawings)
  • Go to the same supplier’s summary page, “more options”, “new prepayment”, and create a prepayment for the same amount on the same date, paid from the same dummy bank account

This will end up with a credit note and money held on account for the supplier, you just end up with an additional pair of bank transactions for money in and back out on the same date, making no difference to the overall balance.


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