recording a returned payment to a supplier

[Deleted User]

Is there a way to record a returned payment besides just delete the original payment.

I use Reckon Accounts Premier 2014.

Thanks

Vicky

Comments

gazza73

Ideally, you never delete a transaction of any sort.

Anyway. let's see.... Your supplier sent you a bill.
You paid the bill.

Now you have been sent back your payment (ie: your supplier gave the money back to you).

So, I assume, that is because the 'deal' has been called off.

I'd create a debit note (IE: A bill, but created with the "credit' button at the top)
That would cause the P&L to show that the original expense has been offset by this, so you now should owe the supplier NIL.

Meantime, you've recently PAID the original bill (which I'll assume was paid against that original bill). So it's time to receive back the money, and post that to the Accounts Payable/Supplier. You may need to do this in the BANK register, because there is no "return money' option under Supplier menus.

Job done.... debit note offsets bill, and returned monies offset your original payment.

Gary Pope
An Accredited Partner- Consultant (VIC. Aust)

"Working with Accountants/Bookkeepers PPs/APs, as an
independent IT Professional and retired FCPA Accountant"

Lucy D'Amico_7077831

You mean payments to suppliers and returned funds to the your bank?

I record them as a Bill and in the account area you put the Bank account instead of the expense. This shows the money came back from the supplier.

it will show in your reconciliation as a deposit.

Then make your payment again and apply the payment to the second bill. Your expense account is intact as there is only one transaction which is the initial bill. The bank has all three transactions - The first payment, the returned funds, and the second payment - all three will be reconciled. The detail remains with the supplier so you have the history of what took place.

Hope that helps cheers Lucy

gazza73

Lucy - clarify to help me too... If the money was returned, then doesn't the company need to show that the original bill is effectively no longer? IE: you've claimed the original real bill as an expense, but if the settlement has been reversed, surely that expense needs to be reduced to nil, and hence the idea of a debit note to do so? Gary

[Deleted User]

If it helps to determine the correct solution...The deposit to the supplier bounced bank as the supplier provided the incorrect bank account details. The payment is still owing.

Lucy D'Amico_7077831

This is how I do it:

The bill is the original invoice - debit expense, credit AP (remains as is)

The payment is made - debit AP, credit Bank (paying above invoice)

The payment is returned - (enter as dummy bill and put Bank in acct area) This will debit bank and credit AP (building the historical transactions)

Make payment again - debit AP, credit bank (in reality you are repaying the original invoice, however you apply the payment to the dummy bill. Make relevant notes in memo area)

Also, bear in mind these transactions will take place within a day or so of each other and you are making notes in the memo area to link them to one another.

And yes you can delete the transaction or change the date of the payment in reckon, as the result will be the same.

I follow this process if it crosses over into 2 reconciliation periods.

kind regards Lucy

gazza73

Vicky

Yes - that was a critical piece of information. Sorry we didn't ask you about the "WHY" before we started assuming a "HOW" to fix this. Typical conundrum when trying to help people as anonymously as the forum prefers. Ignore my comments about a debit note, you obviously still intend to pay this supplier with another proper payment. But, of relevance regardless, I'd prefer to never delete a transaction if it can be avoided, but leave a tidy/honest audit trail instead.

Lucy is on the money on this topic today!

Cheers

Gary

Kevin Silberberg

A General Journal that will suffice is:
Debit Bank Account the amount returned
Credit Accounts Payable the same amount and Select the Suppliers Name

gazza73

Vicky and Kvin,

Good one Kevin. The moral of this article, is obviously, that we need to ask more questions about the surrounding matters giving rise to the transaction. Sorry to assume the question was related to t a desire to reverse a bill, as opposed to finding it was the need to handle a double payment. O(now) obvious that it is a different scenario.

Gary Pope
An Accredited Partner- Consultant (VIC. Aust)

"Working with Accountants/Bookkeepers PPs/APs, as an
independent IT Professional and retired FCPA Accountant"

Kevin Silberberg

Gary, without wishing to offend anyone who seeks help with an issue, in an ideal world each problem would be well defined. In my experience, one needs to be a mind reader. I took a punt which happened to be right; on other occasions I might not be so lucky. Best wishes.

Dan Patient

Works like a treat!