If I have created an sales invoice that a customer overpays (invoice for £160 & customer provides cheque for £200) & I have issued a refund cheque (as a supplier) how do I allocate the £40 from the customer record to the supplier record.
At the moment I have a £40 surplus sitting on the customer’s account & need to get this back to £nil.
I know that I need to create some journal entries, but I don’t know how to write up this transaction?
If it’s a refund then don’t treat it as “payment to a supplier” - I suggest you delete the supplier purchase and payment you’ve already created to get things back to the point where you have just the £160 sales invoice and the incoming £200 payment and nothing else.
Now go to the sales invoice, click the link at the top to “a payment #SP… has been attributed to this invoice” and the payment record will show £160 allocated to the invoice and £40 unallocated. Click the button at the top to “refund balance”, select the right bank account and the date the cheque cleared from your bank, and it will create a £40 money out transaction automatically.
Ian - that’s a great solution as I didn’t know the facility existed. The only slight tweak is, rather than delete the supplier purchase (as all these are audited, I created credit note to cancel this out.
Many thanks
Andy
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