Spend Money - Offsetting Credits (Receivable) against payments

This thread is now closed to new comments.
Some of the links and information provided in this thread may no longer be available or relevant.
If you have a question please start a new post.
Contributing Cover User Clakkers
9 Posts
Contributing Cover User
Australia
Contributing Cover User

9Posts

3Kudos

0Solutions

Solved: Go to Solution

Spend Money - Offsetting Credits (Receivable) against payments

Hi All,

 

I am using AccountRight Basics AU 2016.3.0, and am having a couple of issues regarding spending money when there is a credit sitting in the supplier account.

 

My first issue is when i am trying to pay a couple of invoices, and i want them to net out against an amount owing to us from the supplier. We are a sporting club, and are owed $2,200 from our sponsor, who we also purchase goods from. We have purchased $2,700 from the supplier, and have therefore paid $500, but i can't see how i am able to allocate it against the $2,200, which was done as an invoice through Sales>Enter Sales a few months ago, and is showing as a receivable. Can anyone please explain how i should account for this? All i have seen on the forums relates to settling supplier debits, but this is only explained using Purchases, which isn't available in Basics.

 

My other issue is similar, but relates for solar rebates we receive on our electricity account from having solar panels. I have been recording them as a 'sale', in order to show them as essentially a 'receivable', but now we have used up these credits, and need to pay, i'm not sure how to net these off when i record my payment through 'spend money'. What is the best way for me to be recording these credits? How do i net off the solar credits to record my payment?

 

I'd really appreciate any help here, as i am a bit stuck at the moment.

 

Thanks in advance.

 

Kind regards,

Tom

6 REPLIES 6
Contributing Cover User Clakkers
9 Posts
Contributing Cover User
Australia
Contributing Cover User

9Posts

3Kudos

0Solutions

Re: Spend Money - Offsetting Credits (Receivable) against payments

Hi @Steven_M,

 

You previously helped with a query, and given i've had no responses to this query from any users or myob representatives, i was hoping you may be able to assist.

 

If not, are you able to recommend someone in this area that could help?

 

Kind regards,

Tom

Highlighted
MYOB Moderator Steven_M
32,238 Posts
MYOB Moderator
New Zealand
MYOB Moderator

32,238Posts

4,280Kudos

0Solutions

Re: Spend Money - Offsetting Credits (Receivable) against payments

Hi @Clakkers

 

Basically what you are wanting to do is pay off a supplier balance with a customer balance. Normally you would do it through a contra deal and do it through the Pay Bills/Receive Payments window but in your case as you are using Basics it is a little bit more complex. I would be doing the following steps:

  1. Create a new bank account via the Accounts>>Accounts List>>New. You will need to give the account a number and a name, do also set the account type to be 'Bank'

  2. Go to Sales>>Receive Payments and enter the Payment as per normal but with the Deposit to account being that new account. For example:

    Attachments.PNG

  3. Once that payment has been made you would then record your Spend Money transaction, ensuring that you enter a negative line for the amount paid to that bank account. For example:

    Attachments.PNG

The above process is probably something I would be runinng past an accountant to ensure that they are happy and the outcome would be what you are after.

 

In theory the same prinicple will apply to the solar panel offets as well. 

Kind regards,
Steven

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

Did my answer help?

Mark it as a SolutionHelpful? Leave a to tell others

Contributing Cover User Clakkers
9 Posts
Contributing Cover User
Australia
Contributing Cover User

9Posts

3Kudos

0Solutions

Re: Spend Money - Offsetting Credits (Receivable) against payments

Thanks @Steven_M, i'll give those instructions a go and let you know how i went.

Contributing Cover User Clakkers
9 Posts
Contributing Cover User
Australia
Contributing Cover User

9Posts

3Kudos

0Solutions

Re: Spend Money - Offsetting Credits (Receivable) against payments

Hi @Steven_M,

 

I've been able to transact the sponsorship offset using your method, so thanks for that.

 

I've had a look at the solar panel rebates, but i can't seem to offset them. Perhaps it because of how i've transacted them over the last 9 months or so. Basically,  i've got the following transactions:

May qtr - $187.38 net credit - entered as sales invoice

Aug qtr - ($84.63) net payable - entered as negative sales invoice (credit)

Nov qtr - $165.47 net credit - sales invoice

This leaves a credit of $268.22 against this account. I then have:

Feb qtr - ($340.18) net payable

 

So my actual amount paid is $71.96.

 

When i try to 'receive payment' from the newly created 'bank' account as you outlined, it only gives me the May and Nov credits to allocate against, not the August payable. Should i be coding against the new 'bank' account each quarter, or do i need to code things differently? Should i be entering the 'sale' or 'credit' each qtr, and then receive against the new 'bank' account?

 

Thanks,

Tom

 

MYOB Moderator Steven_M
32,238 Posts
MYOB Moderator
New Zealand
MYOB Moderator

32,238Posts

4,280Kudos

0Solutions

Accepted Solution Solved

Re: Spend Money - Offsetting Credits (Receivable) against payments

Hi @Clakkers

 

Based on the additional information it is actually quite different. 

From what I can gather you have the following situation:

  • 2 'open' invoices - $187.38 (May) and $165.47 (Nov)
  • 2  outstanding credit notes - $84.63 (Aug) and $340.18 (Feb)

As such what I would be doing is the following:

  1. Go to Sales>>Sales Register>>Returns & Credits>>Highlighting that $84.63 credit and select Apply to Sale then apply that credit value to one of the invoices i.e. $187.63.

    Attachments.PNG
    This will make one of the invoice's value to drop by $84.63.

  2. You would then go to deal with the other credit in the Returns & Credits tab. You would then apply that to the outstanding invoice amounts.  Do note as the value of the invoices are $268.22 and the credit value is higher you would need to ensure that the Credit Amount is a changed (in the orange section) to be the amount that is being applied. Also, ensure that you don't have a value in the Finance Charge section. For example, the transaction will look like:
    Keep(1).PNG

  3. This is going to leave you with a credit value of $71.96 to which you can select to Pay a refund on if needed. You can do this via Pay Refund option on the Returns & Credits tab.

Do let us know how you get on and if you require further assistance.

 

Kind regards,
Steven

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

Did my answer help?

Mark it as a SolutionHelpful? Leave a to tell others

Contributing Cover User Clakkers
9 Posts
Contributing Cover User
Australia
Contributing Cover User

9Posts

3Kudos

0Solutions

Re: Spend Money - Offsetting Credits (Receivable) against payments

Hi @Steven_M,

 

Thanks very much for providing answers to my queries.

 

All of my issues seem to be sorted for now, which is great. I'll let you know if i encounter any more problems.

 

I really appreciate your help.

 

Cheers,

Tom

Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post