How to correctly record a payment on the statement as being for credit with that supplier

Question asked by Gregory Sanderson 1 month ago

Hello,

I have a payment to a supplier on my bank statement for, let's say, £100. It was for £100 of credit with the supplier. So I need clearbooks to know I have that amount to deduct subsequent invoices from them from. So ... can someone please tell me:

  1. How do I explain that payment of £100 on the bank statement to reflect that situation? Do I create a bill (Purchases > Bills) from the supplier with an account code to reflect that it is owed ... And/or make a credit note (Purchases > Credit notes) from the supplier?

  2. When I subsequently receive an invoice from that same supplier, let's say for £10, how do I explain that bill as being paid out of that £100 of credit (else it'll be listed as needing paying from the bank account, which it won't need to be)?. Is it from the bottom-right section, from the blue 'Credit' > 'Apply credit note'?

Thanks,

Greg

3 Replies

Easiest way - Suggest you post the £100 via PURCHASES/Unallocated payment - then cross out the payment from the bank download. this keeps the bank balance in balance with CB

When you get another invoice from the same supplier, set it up, save it, and then click Allocate payment - you will then have the option of allocating what proportion of or all of the advance payment you set up as above against the invoice - similar to applying a credit note

Important - the supplier name must be the same in both transactions - and the unallocated payment will remain as a credit until fully allocated

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