My business insurance recently renewed. Let’s say it cost £600. Payment was taken prior to renewal (I didn’t realise this would happen).
I then called and successfully got a better price. Let’s call it £400.
So I have two bank entries from the insurance Co. £600 and a refund of £200.
I think I’ve messed up the accounting for this - I registered a Purchase for the Nett amount - £400. I then allocated both the payment - £600 and the refund - £200 - to the purchase. Thinking it should net out and all would be well
But I seem to have messed it up. QF shows £200 payment as made but not allocated I guess this is because it won’t allocate £600 to a £400 invoice.
Any guidance as to the correct way to treat this would be much appreciated.