how can I apply a supplier credit if the supplier has no unpaid invoices

I need to make a payment to an 'umbrella' company who manage payments for multiple suppliers. I have received a credit from one of the suppliers but they have no unpaid invoices that I can apply the credit against. The umbrella company has applied the credit at their end. How can I process the credit as being applied to my payment?

Comments

DebonAir

You can enter the credit and leave it on the account for next time. If you paid to the umbrella company and they applied a credit, then your account should also be in credit with them.
Take up the credit on the next payment if there is one. If not, ask for a refund.

Carrie_7009426

Hi Jo. I also have an umbrella company to whom I pay the bills for multiple suppliers.

Firstly, in order to pay the invoices from individual suppliers using just one bank payment to the umbrella company, I use a clearing account (a dummy "bank account" which I set up in Reckon). in the Pay Bills screen I pay all the individual bills from the clearing account and I then go to "Transfer Funds" in the banking menu and "transfer" the money from the real bank account (so that it matches my bank statement) into the clearing account. This then puts the clearing account back to zero.
Secondly: In order to apply a credit from a supplier when I have no invoice to apply it to, I do a general journal entry which puts a credit to the COGS account which I purchased the goods from and then on the next line I select the clearing account and put the figure in the debits column. in the Name column for both lines I select the supplier.
I hope this makes sense - let me know if you would like more info.

Another thing I find useful is under Accounts Payable (in the chart of accounts) I have a sub-account for the umbrella company. I then select this sub-account from the drop down box on the enter bill screen. This means that when you go to the pay bills screen you select the sub-account and you can just see all the relevant invoices to be paid and you can easily generate reports too.

Jo Arnold

Hi Carrie

Thanks for your reply - sounds like a good option. I'll give it a go. I especially like the idea of the sub account.

Carrie_7009426

It took a bit to get my head around initially but it is quite simple when set up.

Jo Arnold

Hi Carrie

Not sure if you remember this thread. Obviously I haven't had to deal with this issue in a while and I'm a bit rusty. I've created the journal for the credit from the supplier who has no open invoices and that all works and the clearing account is in balance. My problem is the credit is still showing on the supplier's file? How do I get rid of that?

Thanks in advance.