Question asked by Karen Roberts 8 years ago
I have a customer who has paid more than they should. We have sent them the money over now. How do I show this in their account so its matches the bank statements for the bank rec. In the ideal world I would like to issue a credit on the account and allocate the refund to it but it wont let me. Any help would be appreciated :)
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Best answerFigured it now. Hope I have done right, I put the customer as a Supplier/Customer and put money in. The account now looks good so hoping the bank rec will match up now.
Hi Karen
In my experience you would normally create a nominal code called 'overpayments' or something similar. You would then analyse the excess credit against that nominal code.
Then, when you do the refund, you would class it as a refund against the same code.
The two entries will cancel each other out whilst also showing on the customer statement.
I think what you've done at the mo is to create a payment on account which would then sit within the unallocated cash section. That's fine is you're planning to use the funds against a future invoice but if you're looking to instead refund it it gets quite messy.
Ok thanks. I created a nominal code. (we had an accountant set up clearbooks in the beginning) I know nothing on how this works. I created a credit and put to that nominal code. (overpayment) I did a money out (manage money) against the same code for that amount. The statement still shows they are in credit. As you cant allocate a credit and refund together this is what is causing me the confusion. What am I doing wrong?
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