Customer W is a customer. A,B,& C are also customers. A,B & C have been invoiced. W owes nothing. W pays the 3 invoices due by A,B and C in one amount into our normal bank account. What entries do I make against the Cr to our bank account?
Hello @Remidiah
There is not really a way to show 1 client paying another clients invoice.
You could do the below
- Set up a dummy merchant bank account.
- Open the 3 invoices and mark them as paid from this new account.
- Record a transfer from the dummy account into your bank.
- Optional add notes to the transfer in your main bank stating that it has come from Customer W.
The dummy account balance would be nil
May need more explanation.
Initial banking to be tagged as bank transfer to dummy account and then log the invoices as received into dummy account.
Option 2 is to delete the original banking entry and manually enter the 3 amounts, using the same date as original banking and arriving back at same total.
Hi @Remidiah
I have a company, that also pays several invoices for their smaller branches.
I handle them as per option 2, suggested by @Bagpipe and found this to be the simplest way to track. If there is an overpayment, underpayment or any discrepancy I hold the unallocated amount on the Main Company account.
This topic was automatically closed after 7 days. New replies are no longer allowed.