So bit of tricky one for you that we could do with some help regarding an over payment and credit on account and how we mirror the problem in QuickFiles.
So our supplier presented us with a statement which we paid in full, without manually checking the invoices (admittedly not best practice). On that statement our supplier had mistakenly included an invoice amount of £12.12 which had already been paid in a previous accounting year (before we started using quickfiles as it happens).
We paid this statement which had 9 invoices for the current month + the 1 invoice for £12.12 which as I mentioned had already been paid in a previous year. This created a situation whereby we had an over payment on account with our supplier of £12.12
At their end they resolved this over payment by giving us a credit as ‘cash on account’ (no credit note was supplied), which was then used two months later against the next payment/set of invoices.
What I would like some help with is how do we create a £12.12 credit born from an over payment given back to us as ‘as cash on account’ against that supplier in quickfile, without relating that £12.12 credit to an invoice that doesn’t exists in quickfiles.
Any help, explained in layman terms would be much appreciated.
They are showing as unpaid and there is also a genuine credit against an invoice in that same period, but I didn’t want to muddy the water with that one.
So what you would do is input your bank transaction on your bank statement as normal. Then click “Tag Me!” and click “Payment to supplier”
Unless you have an invoice matching the exact value of the transaction, it will show no results, which is fine. There’s an option at the bottom to “Pay down multiple invoices or hold on account”
From here, enter the supplier name and you’ll be shown a list of outstanding invoices. Tick off the ones the payment applies to. Anything that remains unallocated will be assigned to the supplier to be used against future invoices. You can use this by clicking the “Log Payment” option on an invoice, which will show a Apply from credit option, similar to this:
Hope that helps, but please let me know if we can help further
OK, so we have gone through the motions and had a bit of an experiment and we are getting their in our understanding of how to remedy this, but we still have an outstanding query before we action your guidance.
Regarding the above methodology this would deal with that oddball credit note for £12.12 (we can see how this would work). What I really struggle with with Quickfiles is how we create a credit note against a supplier without having to assign to an invoice…
I raise this because on the same statement we have another credit note that is offered as credit on account.
Total Actually Paid = £790.10 (1 penny difference)
I really struggle finding a simple way of creating a credit note, that simply applys the credit to the account, then I can use that to off set against future invoices as is the case with the -£32.40
OK, Just to give you an update as to where we are at, as in some respects we are making head way and in other areas we are going backwards…
So regarding the £32.40 credit, I have assigned this to a previously paid invoice and then allocated the funds as a credit on account, assigned to said supplier, so this makes sense to me! The supplier statement in questions reads as follows:
28/09/17 Invoice £12.12 (This was hand written on the statement and is the overcharge as this invoice was paid the previous year, prior to us using quickfile)
Total Amount Paid to Supplier out of Bank Account = £790.10
So as you can see we have two hurdles to overcome. First is the overpayment of an invoice that doesn’t exsit in QF for £12.12, which I can see we can deal with via your recommended suggestion, however I also have a credit of account that I need to apply to the same outgoing payment to the supplier of £32.40
I hope this gives you enough information to further advise and once again thanks for the help.
(Just as a bit of context, we made run our books and accounts much tighter, however I was one man in warehouse wearing many hats when we first started and thus, it was easier just to take the suppliers word and assume that the supplier statement was correct! We now have a book keeper thankfully!)
What I would do is generate a credit note for £32.40 against one of the unpaid invoices first, which will reduce the outstanding balance rather than creating a “prepayment”, then apply the actual payment to the invoices as described above.
