Supplier Issued Credit Notes

[NDG1944]

As a result of submitting an actual meter reading which is below their own estimated reading, the utility company has issued two credit notes to credit the two months bills that are affected by this. They then subsequently issued 2 revised invoices for the reduced amount after which the ‘balance’ on the our account with them is in credit. The credit balance is then taken into account on the third invoice/bill. The revised invoices have not resulted in a charge to the bank.
How do I incorporate these credit note/ credit amounts in QF bearing in mind that the original invoices/bills where split across two nominal accounts.
Regards, Nigel
PS: we do not run the supplier/customer payments through QF.

[QFSteve]

Hello @NDG1944

There are a few ways to do this

This is what I would reccomend

• Open the first original invoice.
• Options > Credit Note.
• Refund the money (you may wish to do this using a dummy bank account).
• Repeat for the second months invoice.
• Raise the new invoices they issued you.
• Record a money in transaction for the amount your received from them.
• Tag the transaction as a supplier payment (selecting the option to pay down multiple invoices or assign to supplier account).
• Select the 2 invoices in the list and the remaining amount of credit should show as unallocated (see example).

Example
I entered a payment of £120, paid 2 invoices (£5 and £60) leaving £55 remaining on their account as unallocated.

[NDG1944]

Thanks for the possible approach however as I said as a PS we don’t record invoices in our system. As a supplier, in this case any utility company or maintenance engineer etc raises a bill/invoice it is either paid via direct debit or bank transfer as nominally a ‘cash’ transaction. We will see the transaction in QF only as an entry downloaded from the bank via autofeed. I am thinking that I could use the ‘add transaction’ facilty to introduce the CRN into the bank account that pays but that to me affects the integrity of the bank balance and the fully automated nature of the autofeed process.
Any thoughts given the above simplification?
Regards, Nigel

[QFSteve]

Hello @NDG1944

If you do not have the supplier record and record the invoices and credits you are just recording the money exchanging hands (payments and refunds).

I can see you have just been tagging the payments to a nominal code (gas).

(Thinking outside the box)
You could set up a dummy bank account (called something like utility credits) and record a money in transaction from your gas code.

This would reduce the balance on the gas code and show the money as an asset to the business.

When you next pay your gas bill you could do the following.

E.g. Gas bill = £100, Credit = £30 Payment = £70

• Tag the £70 payment as you have been doing.
• Record a money Out transaction from the utility credits dummy bank and tag it to the gas code.

The utility credit has been used up and the full £100 expense has been paid.

You could also use this code (utility credits) for other supplier credits you may have (water/phone/broadband/electricity etc).

*Note: You may wish to check this with your accountant as I am not a registered accountant nor bookkeeper.