I have received a payment into my current account from a customer in error which I have returned. So now a have to untagged items in the bank statement. Do I need to worry about this?
I don’t know if there is a way to contra out the entries within bank tagging but the alternative is to treat it as a pre-payment and then refund it. The link below seems to be for a purchase but I have checked and the sales side is identical.
It doesn’t actually matter what you do with it as all liabilities and sums will be zero when all said and done. You could do as above, or raise an invoice and credit it, post it directly to a nominal or just delete both entries. I think I have used all these methods and one point or another!
Thank you for your reply which was most helpful. As you have pointed out The in - out is zero so I think I will just level it as it is. Its just that I dont like the RED in the tagging on the back account.
John
If you don’t want the entries to show as red then you need to tag them as something, but it doesn’t really matter what as long as you tag both the same way so they zero out. Simplest options would be to make them bank transfers to and from a spare account such as petty cash or drawings, or use “something not on the list” and explicitly tag them both to something like the suspense account or mispostings.
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