Supplier paying invoices with Credit Notes and taking the amount off statements, HELP.

Kathleen93
1 Post
Cover User
Australia
Kathleen93
Cover User

1Posts

0Kudos

0Solutions

Solved: Go to Solution

Supplier paying invoices with Credit Notes and taking the amount off statements, HELP.

Hi,

 

I will do my best to explain what's happening, in hopes that somone may have come across this before. 

One of our suppliers pays partial advertising costs, we make a Sale invoice to send to them.

The supplier than creates a credit note, this credit then comes off of our parts statement. 

 

Now I can mark off the invoice as a "credit note" payment type, it will then show up in the rec. 

The issue I'm going to have is the "Pay Bills". 

When I enter the payments, I am going to have invoices showing up unpaid every month because the total paid won't be the same as the invoices entered because I can't use the credit note to take up any amounts as it will end up on the reconciliation twice. 

Does anybody have any ideas on a remedy to this issue and what you do to get things to line up correctly?

Please leave a comment if I need to clarify any information. 

1 REPLY
Ultimate Partner Mike_James
3,437 Posts
Ultimate Partner
New Zealand
Mike_James
Ultimate Partner

3437Posts

1270Kudos

412Solutions

Accepted Solution Solved Solution

Re: Supplier paying invoices with Credit Notes and taking the amount off statements, HELP.

Hi @Kathleen93, you can deal with this by doing the following:

 

- Create a 'contra' account in your accounts list, say under current assets

- create a service credit for the amount of the sale to your supplier, allocated to the contra account

- settle that credit against the sales invoice, which should close both invoice and credit

- create a service debit against the supplier for the same sale amount above (also allocated to the contra account)

- settle that debit against the supplier bill, leaving the amount to be paid by the supplier.

 

The balance of the contra account should always be nil after each pair of entries.

 

Use a non-reportable GST code for the 2 contra entries.


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post