Forum Discussion

PickleS's avatar
PickleS
Contributing Cover User
5 years ago

Prior year adjustment.

Hi there,

 

We have received a payment for an overdue invoice. This was overpaid by 1 cent! As it's in a prior year I can't adjust the invoice to match the payment. How do I get rid of the 1 cent credit? Thanks so much. 

  • Hi PickleS 

     

    To clear a credit in AccountRight, you either need to apply it to an invoice or pay it out as a refund. Assuming that the credit will not be applied to another invoice for this customer you could look at creating a 1 cent invoice to apply the credit to. Do note that this will impact on whichever accounts selected in the transaction.

     

    Alternatively if you pay the credit out as a refund this will impact your bank account. You can record a reversing journal entry to offset that amount, however I recommend speaking with your accountant over how that journal entry should look

2 Replies

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  • Neil_M's avatar
    Neil_M
    Former Staff

    Hi PickleS 

     

    To clear a credit in AccountRight, you either need to apply it to an invoice or pay it out as a refund. Assuming that the credit will not be applied to another invoice for this customer you could look at creating a 1 cent invoice to apply the credit to. Do note that this will impact on whichever accounts selected in the transaction.

     

    Alternatively if you pay the credit out as a refund this will impact your bank account. You can record a reversing journal entry to offset that amount, however I recommend speaking with your accountant over how that journal entry should look

    • PickleS's avatar
      PickleS
      Contributing Cover User

      Thank you - much appreciated!