Payment of Sales Invoice against a loan account

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Payment of Sales Invoice against a loan account

Hello,

 

We have an Asset account (Account Type: Other Asset) to record the money we have loaned to our parent company.

 

We also have some Sales Invoices to our parent company - but they won't pay them.  Instead, they want us to reduce the loan account according as a way of paying these Sale Invoices.

 

How do I do this?

 

Thanks in advance.

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Re: Payment of Sales Invoice against a loan account

Hi @charliez , the sales invoices are debtors, so both them and the loan account are assets and can't be offset. I suggest you point this out.


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

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Re: Payment of Sales Invoice against a loan account

OK... so here's what I've done.

 

I've changed the Asset Type of the loan account from "Other Asset" to "Bank".

I then recorded a payment for the outstanding sale invoices, using this loan account as the "Deposit to Account" ... effectively increasing the loan to the parent company. 

 

Seems to work OK.  Is there anything I should be aware of?

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Re: Payment of Sales Invoice against a loan account

Hi @charliez , that's correct, and it increases the loan account, I was slightly confused in that I took from your first post that head office expected it to reduce.


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

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Re: Payment of Sales Invoice against a loan account

Yes, you're right; I was confused in my original post.  But it looks like we got the right outcome after all.  Thanks.

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