Cancelling out unallocated receipts and unallocated payments

Problem reported by Paul Barnes 4 years ago

We paid a supplier in advance for some goods. I placed the payment in unallocated payments. The bill for what was actually supplied was less than the payment. So I entered the bill and allocated payment, leaving a balance of £369.36 in unallocated payments. The supplier then reimbursed the £369.36, which is now sat in unallocated receipts. So I have the same company with the same amounts in both unallocated receipts and payments - so the 2 net each other off.

What is the best way to clear these 2 off the system?

5 Replies

I followed the process on the guide. If I have £369.36 in unallocated payments and £369.36 in unallocated receipts then I have both a sales overpayment and a purchase overpayment. So I followed the guide to do a sales overpayment (using an overpayments account in current liabilities). I then followed the guide to do a purchase overpayment (using an overpayments account in current assets).

BUT !! If I look on my creditors report there is a line there saying we owe them £369.36 However in the debtors report there is no line. But we don't owe them anything.

Please help, look into it and tell me what I did wrong and exactly what I need to do in future.

Hi Paul,

Just had a quick look at your account - I think the whole process is wrapped up with PUR 1675, PUR 783 and PRF 365. So the original payment (including the overpayment amount) is allocated to PUR 1675 & PUR 783. The refund of overpayment you received is explained by PRF 365.

However, you have 2 additional transactions which I don't think you need PAY 636 - this is explaining more money to the supplier and can be voided.

INV 1267 - this is explaining the receipt of the overpayment and is duplicating the job of PRF 365. This can be voided (both invoice and payment).

Well I'd be happy if you could look into this.

I voided PAY636 and INV1267 as you suggested, but then the contra account didn't balance. So I voided all the overpayments transactions I did this week, so I could get it back to where I started - ie with the amount in unallocated receipts and the same amount in unallocated payments. But now I have done the voiding there is no sign of any unallocated cash on either side. And the company doesn't feature on the debtors or creditors reports

So it seems that doing what I did originally, finding it didn't work, then voiding everything I did, seems to have achieved what I wanted in the first place.

But I'm not sure that's really the right answer?

John

I have another supplier where I have to do the same thing. Please have a look in my account. In Unallocated Cash: In unallocated receipts Payment 002498 - Original amount £822.36. Still to allocate £304.08 In unallocated payments Payment 002549 - Original amount £304.08. Still to allocate £304.08 So the £304.08's cancel out. Please can you tell me (specific for my case - not a referral to a guide) what I need to do clear these 2 off. Thanks Paul

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