Processing Credit Notes
We have a supplier that we have a 60 day account with (so I will be paying our February bills from them at the end of April). They have recently issued us with a number of credit notes, due to overcharging (across 16 invoices from the past several months). These credit notes are all dated March, which is when they were issued.
My question is, should I wait to process these with the March bills, or can I process them against the February bills? What is the best accountancy practise in this sitaution?
On reflection I think that as best practice you should apply the credits to the relevant invoices and any invoices that have been paid you should apply those credits with your next payment
You can apply the credits to the open relevant invoice through either settle returns of pay bills ( it brings up a warning saying you have credits and asking how you want to apply them) so you can apply the individual credit to the relevant invoice and any other credits that the invoices have been paid you can take from the next payment
Hope that makes sense
Lisa
