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how to enter a duplicate payment for a Supplier then a refund in RAH

Sheryl_10313093

I have attempted to solve this issue with the help links I have seen. However, I am still not balancing. A supplier's bill was paid twice. I need to show the overpayment and the cash refund received from the Supplier.

Comments

Nicola_10273952

Hi Sheryl
The easiest way to do this is:
raise a dummy bill for $1
pay it off for the full amount that was overpaid (say $600)
delete the bill for $1 - this will then leave the supplier in credit by $600
when the supplier refunds you the $600 - enter this in as a deposit and use the from account as "Accounts Payable" (or whatever you have your AP set up as)
go into pay bills and there will be a 'bill' for $600 for this supplier, click on this and then select set credits - the $600 overpayment will be sitting here and you can then offset the two
Cheers
Nicola

Sheryl_10313093

Thank you so very much! That was so simple!

Acctd4

Hi Sheryl/Nicola

Nicola's suggestion doesn't correctly reduce your original expense/COGS or take into account the refund of any GST component.

The correct method is as follows:

Enter a “Bill Credit” (with Items/Accounts & Tax Code(s) as per the original Purchase/Bill)

Then enter a Deposit (“Received from” the same Supplier) posting to your “Accounts Payable” account. Enter/select as applicable for other columns including Memo in both Memo fields (eg “Credit Refund for ..…”)

This places the “Deposit” in the Bills list in your Pay Bills window for you to apply the Credit against.

Go to Pay Bills
Tick the Deposit in the list
Click on the “Set Credits” button (above “Payment Date”) & then “Done” to confirm in the allocation window
Make the “Payment Date” as per the Refund received date then click on “Pay Selected Bills”

NB: Due to a long-term glitch, the Deposit won’t automatically show in your Supplier’s transactions as the payee name drops out on stand-alone Deposits.

To correct this, simply go to your Bank Account register & enter/select the Supplier name in the Payee column & save/record the transaction.

When you go back to your Supplier Centre, this Deposit will now show in their transaction list.

This process ensures the:

GST credit is correctly accounted for
actual refund received is recorded &
existing credit is cleared

Shaz Hughes Dip(Fin) ACQ NSW, MICB
Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)
Accounted 4 Bookkeeping Services
Ballajura, WA
0422 886 003
shazinoz2@bigpond.com
www.accounted4bs.com

Nicola_10273952

Hi Shaz

The original question was how to treat a DOUBLE payment - that shouldn't be treated as a credit or a refund.

Your instructions are correct if a credit or a refund was due - I would have given the same instructions but when a double payment or overpayment has been made there should be no GST or expense put into the accounts as it is simply a mistake that needs correcting.

If the overpayment wasn't refunded and instead a credit was against the account, the same way I have given the instructions would be correct and when a bill was received from the supplier you could use that credit against the bill - the GST and expense would then be correctly treated by the bill being entered.

Nicola

Acctd4

Hi Nicola

Ahhh … I misunderstood. Yes, my previous instructions were intended in the case of a Supplier Refund.

For a simple overpayment though, a “Write Chq” (with no tax code) can be entered for the incorrect (duplicate) payment with the refund “Deposit” posting back to the same account to offset it.

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com

Nicola_10273952

You could but then if you run a supplier report / statement, the cheque won't show as a credit - just as an additional payment to them. In the background a cheque will work as you can put to AP and then put the deposit to AP and of course the will offset. But overall a cheque isn't the best / correct way of doing it as it isn't showing the what actually happened - which is a double payment as a credit on their account.

Acctd4

To clarify .... yes, the account to use is the AP account on both the cheque & the deposit.

Because it’s posted to AP, this DOES show as a credit on any supplier detail report & is the correct way of recording it as this represents a 2nd payment in addition to the original bill payment (eg the extra/overpayment)

Once the overpayment is then refunded (via the deposit entry), this clears the outstanding credit balance which is correct as the Supplier account is no longer in credit once that credit has been refunded:

Image httpsd2r1vs3d9006apcloudfrontnets3_images1817361RackMultipart20191211-464-1276dut-Capture_inlinePNG1576056242

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com

Sheryl_10313093

I definitely need to re-read the above advice. Thank you all.

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