Credit notes and refunds

KimM
KimM Member Posts: 10

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

Answers

  • Kris_Williams
    Kris_Williams Member Posts: 3,243 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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
    KimM Member Posts: 10

    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
    Acctd4 Accredited Partner Posts: 3,315 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • KimM
    KimM Member Posts: 10

    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
    Acctd4 Accredited Partner Posts: 3,315 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • KimM
    KimM Member Posts: 10

    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
    Acctd4 Accredited Partner Posts: 3,315 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    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.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • KimM
    KimM Member Posts: 10

    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
    Acctd4 Accredited Partner Posts: 3,315 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited April 2023

    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 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • KimM
    KimM Member Posts: 10

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

    😀