Refund for over payments in a previous tax year

Accounting
1

Dear Support,

My client made an overpayment on 21/08/2017, my year end would have been 31/08/2017.

I processed the full refund on 12/10/2017 which is in the new tax year.

I am attempting to raise a credit note to reconcile the untagged entry but QF fails to recognise any previous related transactions, possibly due to the previous tax year being closed?

Please advise on how I can tag and reconcile this entry?

Many Thanks
David

2

Hi @cosmicdave

How was the overpayment tagged originally? Was it left as a prepayment on the clients account?

3

I allocated it against 6 separate invoices, those invoices were probably raised against the remittance slip which we received and used as a guide, this client pays so frequently, sometimes I have to raise the invoices after we receive payment.

4

Any further suggestions regarding this? This is the only untagged item preventing me from closing my year end. Thank you.

5

Hi @cosmicdave

Apologies, your earlier reply seems to have slipped past me!

If it was just one transaction that was marked as an overpayment, you can just refund the balance - there wouldn’t be a need to raise a credit note unless your crediting an invoice.

There’s a previous post that highlights how to do this (here: Refund client overpayment). As you refund it, it will create a pre-tagged entry in your bank statement, so you can delete any untagged duplicate entries.

If it’s split across multiple payments, then it would mean it’s a little bit more complicated, as each one would have to be refunded individually.

Hope that makes sense?