How to record purchases overpayment made to a consolidation company

Question

Hi,

I would really appreciate some help with this. We are in the automotive industry and have been using Capricorn to pay a group of suppliers.  Recently, I ended up overpaying Capricorn because they failed to record our previous month's payment on the next statement. I typically record the payment in the same manner as you would for payments made through PayPal.

I made a payment of $1,714.49 to Capricorn for invoices totalling $460.90, leaving me with $1341.34 to allocate.  I have no idea how to record this because there is no one single supplier to credit.  Until this is sorted, I am unable to perform a bank reconciliation. Help please?

Genreve_S · Accepted Answer

Hi @Tektite,

The way this payment’s been recorded is a bit different than usual. It’s kind of stuck in limbo at the moment, because your software knows when it hits the invoices and when it goes out of the bank, but isn’t tracking when it’s sitting as a credit with Capricorn.

One way to sort this: set up a separate account just for Capricorn. Pop the $1714.49 across to that account and then pay the invoice dues ($460.90) from there. Should do the trick – but best to double-check with your accountant to make sure it all adds up right.

Regards,

Genreve