Credit notes and refunds

Hi there - going round in circles here. I noticed that for one client in accounts receivable there is a large credit showing. This has come about from a number of overpayments, whereby a credit note/adjustment note has been done for each overpayment from this customer, then applied as a refund and then the payment made to the customer. However, even though refund was selected as an option when applying the adjustment note, there is still a credit showing which is reducing the balance payable by this customer. How can this be undone or adjusted? Kind regards. Kim

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Kris_Williams

You don’t have to create a credit note, the credit has occurred by the overpayment, you just have to do a refund. Enter a cheque to customer, post to accounts receivable and select the customer in the far right column. This will wipe out the credit.

KimM

Thank you Kris - that is very helpful.

However, the credit/adjustments are already done.

When they were created the officer selected 'Refund' instead of linking to an invoice, then entered payment as a cheque to the customer.

This has all reconciled to bank statements but the credits are still showing in accounts receivable by reducing the balance payable by the customer.

Acctd4

Hi @KimM

Are you on a Cash or Non-Cash (Accrual) basis for BAS ?

If you are on a Cash basis, you can Void or Delete these unallocated extra Credit/Adj Notes. If you're on Accrual, you'll need to enter a GJ (or Tax Invoice) instead, to clear them.

KimM

Ok thanks Shaz. We are accrual basis. I'll try the GL first and see how I go otherwise will go to the Tax Invoice. Really appreciate your help. Kim

Acctd4

No problem Kim 😊

Important points to remember ...

Ensure you use the SAME Account(s) (or Item(s) if using a Tax Invoice) as/that the original Cr/Adj Note Item(s) are linked to
GJ or Tax Invoice Date should be in the current BAS period
After entry, go to Receive Payment to apply the outstanding Cr/Adj Note(s) to the GJ or Tax Invoice transaction(s)

KimM

Thanks Shaz!

I have done this and applied the credits this morning and that has worked.

Very much appreciated.

I still have one credit showing on the Aging Detail but no credits available against this customer so I am not sure how to treat this one.

Cheers

Kim

Acctd4

Hi Kim

Is it a Payment that's showing ? If so, that usually means it's not been "applied" - Double-click on it & tick the applicable invoice(s) it's paying.

KimM

Thanks Shaz.

It is a credit note which is showing in Aging Detail.

But there are no credits left showing against this client.

Am a little confounded by it.

Acctd4

OK - in that case, it either hasn't been applied to its applicable existing, relevant invoice OR is just another one that you need to enter a GJ or invoice for (as per above) & then apply 😊

KimM

Thanks - yes I think it was the first - not applied to applicable listing.

😀