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Helenqu's avatar
Helenqu
User
2 years ago
Solved

How to enter a credit for a purchase

Hi,

 

I would like to book the following entry via Purchases in MYOB accounts right:

 

Dr AP

Cr Other Receivable

 

How can I do in my MYOB accounts right?

 

Thanks and regards,

Helen

  • ChrisMYOB's avatar
    ChrisMYOB
    2 years ago

    Hello Helenqu 

     

    If you have multiple companies you can set up loan liability accounts, for example, in Company A set up a loan liability account for Company B. When you create the loan liability accounts select Credit Card as the Account Type.

     

    If Company A pays a Company B bill, enter the bill as normal in Company B. When recording the payment, or if you're recording a Spend money transaction, select the Company A liability account in the Bank account field. In Company A record a Spend money transaction, select the bank account in the Bank account field, and allocate to the Company B liability account.

     

    If funds are transferred between different company's bank accounts, record Transfer money transactions. The From account is the account funds are being withdrawn from and the To account is the account funds are being deposited to. For example, Company A transfers funds into Company B's bank account, in Company A the From account is the bank account and the To account is the Company B liability account. In Company B the From account would be Company A liability account and the To account is the bank account.

     

     

    If my response has answered your inquiry please click "Accept as Solution" to assist other users to find this information.

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  • ChrisMYOB's avatar
    ChrisMYOB
    Former Staff
    2 years ago

    Hello Helenqu 

     

    Welcome to the Community Forum.

     

    To enter a credit onto a purchase you will either need to reverse the purchase (Use this method if you've paid for the entire purchase, and now need to cancel it) or manually create a debit (Use this method if you've received a credit for part of a purchase.).

     

    Please make sure if you are creating a debit manually you will need to also create an expense account for tracking purchase returns and allowances. 

     

    I have linked our Help Article on supplier returns, debits, and refunds which will provide you with the steps on how to create a credit based on the transaction.

     

    If my response has answered your inquiry please click "Accept as Solution" to assist other users to find this information.

     

    • Helenqu's avatar
      Helenqu
      User
      2 years ago

      Hi Chris,

       

      Thanks for you reply.

       

      The purchase invoice was paid from our intercompany A rather than our company B, so I book the following transaction in intercompany A:

       

      Dr Other receivable - B

      Cr Bank account

       

      At the meanwhile I need to record the transaction in our company B:

       

      Dr Accounts Payable

      Cr Other payable - A 

      I now create a new purchase as a negative amount in AP of our company B, this leads to a negative amount in AP with a debit status, which can be offset with the positive purchase invoice, but the status for this positive purchase invoice is still open. 

       

      Do I need to make any further adjustments in AP of our company B?

       

      Looking forward to your reply.

       

      Kind regards,

      Helen

       

       

      • ChrisMYOB's avatar
        ChrisMYOB
        Former Staff
        2 years ago

        Hello Helenqu 

         

        If you have multiple companies you can set up loan liability accounts, for example, in Company A set up a loan liability account for Company B. When you create the loan liability accounts select Credit Card as the Account Type.

         

        If Company A pays a Company B bill, enter the bill as normal in Company B. When recording the payment, or if you're recording a Spend money transaction, select the Company A liability account in the Bank account field. In Company A record a Spend money transaction, select the bank account in the Bank account field, and allocate to the Company B liability account.

         

        If funds are transferred between different company's bank accounts, record Transfer money transactions. The From account is the account funds are being withdrawn from and the To account is the account funds are being deposited to. For example, Company A transfers funds into Company B's bank account, in Company A the From account is the bank account and the To account is the Company B liability account. In Company B the From account would be Company A liability account and the To account is the bank account.

         

         

        If my response has answered your inquiry please click "Accept as Solution" to assist other users to find this information.