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Jackio's avatar
Jackio
Trusted Cover User
4 years ago
Solved

CREDIT NOTE ON SALE

Hi,

We have a $8 credit for a client which is an old invoice from July 2020.  We have been chasing our client to refund the money and finally got in touch & he told us to buy a beer.

I have the money sitting in the returns and credits and no further works in the future have been booked in.  What is the best way to deal with this.

Thanking in advance for your help.

Regards

Jacki

  • Steven_M's avatar
    Steven_M
    4 years ago

    Hi Jackio 

     

    I'm sure you want to get this sorted by the end of the week so you can have that beer on Friday afternoon. The following process is what I would recommend doing to clear that credit, you might want to speak to an accountant in relation to the accounts involved:

     

    1. Create a holding bank account - Accounts>>Accounts Lists>>New - Give the account a number, name and set the account type to be Bank.
    2. Once created, navigate to Sales>>Sales Register>>Returns and Credits
    3. Highlight that credit note
    4. Select Pay Refund
    5. Within the generated Settle Returns and Credits window, update the Bank Account to be that clearing account. Ensure the date, amount... and other values are correct before selecting Record.

    What the above process will close that credit note, as it's been processed. It will also put a value into that clearing account, which you can create a journal for to transfer that balance across to another account (such as a miscellaneous income account) through Receive Money or a Journal entry.

    All that is left would then be to drink that beer.

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  • Steven_M's avatar
    Steven_M
    Former Staff
    4 years ago

    Hi Jackio 

     

    I'm sure you want to get this sorted by the end of the week so you can have that beer on Friday afternoon. The following process is what I would recommend doing to clear that credit, you might want to speak to an accountant in relation to the accounts involved:

     

    1. Create a holding bank account - Accounts>>Accounts Lists>>New - Give the account a number, name and set the account type to be Bank.
    2. Once created, navigate to Sales>>Sales Register>>Returns and Credits
    3. Highlight that credit note
    4. Select Pay Refund
    5. Within the generated Settle Returns and Credits window, update the Bank Account to be that clearing account. Ensure the date, amount... and other values are correct before selecting Record.

    What the above process will close that credit note, as it's been processed. It will also put a value into that clearing account, which you can create a journal for to transfer that balance across to another account (such as a miscellaneous income account) through Receive Money or a Journal entry.

    All that is left would then be to drink that beer.