Overpayment from supplier write-on

Hi there,

One of my suppliers requires an account balance to pay for their services and so I always have to transfer money from bank > supplier’s account. After I top up credit, I pay invoices from that balance.

I have mirrored this in QF > created an account for this supplier. I then move the amount from bank account to this supplier acct. Then once they send me an invoice, I mark the invoice as paid from that supp account.

Now I have requested a refund of some remaining credit but they were unable to refund the exact amount and instead refunded me more (example: credit balance = £175; refund = £200). As the money arrived in the actual bank account, I have tagged the £200 transaction as transfer between accounts (supplier’s account > bank account), which resulted in negative balance in the supp account (- £25).

I’m wondering how to write this off (or actually write on) correctly?

Thanks a lot.

Hi @rookie

Apologies for the delay in replying.

Can I just check that you’ve created a separate bank account for the supplier rather than holding funds on their account (prepayment)?

In your example, what are they classing the additional £25 as? Is it goodwill credit for example, or have they attributed it to something else?

Hi @QFMathew ,

no problem at all, thanks for your reply.

  1. Yes I have created a separate bank account for the supplier in QF.

  2. I’m not exactly sure. I’d assume it would be “goodwill”.

Please accept my apologies as this seems to have slipped under the radar.

The best way to handle this type of scenario is to use the “prepayment” feature against a supplier rather than a separate bank account. However, there isn’t anything wrong, per se, with the way you’ve done it.

The other option is to just enter is as a negative value on a purchase invoice when the credit is redeemed.

This post may help with this: Goodwill Credit Note for Supplier - #8 by QFMathew

Hope this helps!

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