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asddrgd21's avatar
asddrgd21
Experienced Cover User
3 years ago

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

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  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User

    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

    • asddrgd21's avatar
      asddrgd21
      Experienced Cover User

      Thanks for your help Lisa! That makes sense

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User

    Hi

    six of one half a dozen of another really.

     

    so long as you send a remittance to the supplier if you take up the credits so they can reconcile. I can't see that it makes a world of difference either way

     

    Lisa