How to account for a supplier overpayment?

Support
1

One of our suppliers sent a payment into our bank account as a partial refund against an invoice, they then sent the same amount again by mistake, at their request we sent it back to them.

How do we account for this in/out transaction in QF? I can’t see any obvious way to do this and associate it with the supplier.

Thanks,
Chris

2

Hello Chris

  • Is the overpayment show in the bank?
  • Have you tagged it?(if so what as?)
3

Yes, the overpayment was paid to us via bank transfer and we sent it back to them via bank transfer, both transactions appear in the bank feed.

No we have not tagged either transaction yet - that is my question - how do we do that, i.e. how do we process these transactions against the supplier’s account?

Thanks,
Chris

4

Hello Chris

There are 2 options to process this

Option 1

  • Duplicate the original invoice and mark as sent
  • Tag the receipt to it
  • Open the invoice and credit it off and refund the credit note
  • Delete the untagged money out transaction to avoid duplication
    This method shows the activity on the supplier account of what has happened.

Option 2

  • Tag both the Money i9n and Money Out transactions as something else not in this list
  • Select the same purchase code
    This method tags both transaction and they net off in the purchase code but do not link to the supplier account, I would reccomend making reference to he the supplier in the descriptions before tagging
5

If it’s the same amount coming in and going straight back out again then the simplest would be to tag the money in as a transfer from drawings or director’s loan (depending whether you’re self employed or a limited company) and the money out as a transfer to the same place, with notes explaining what happened.

6

Ok, thanks. I went with option 2.

Seems to me there should be a better / more intuitive way of processing supplier credits in general, I always have issues with them. Maybe your development team could look into this?

Regards,
Chris

7

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