More of an accounting question than system problem

Chris_7677427

I realised I processed a credit note in AP in the last financial year March24.

In April24 (current financial year) I had the amount paid to us.

So now the account is showing a credit balance when I actually have an invoice to pay.

Tricky thing is the 2 different years. Our accounts have been completed for March24.

Not sure what to do here? Enter an inv and offset with the credit?

TIA

Accepted answers

All comments

Acctd4

Hi @Chris_7677427

Are you referring to a Customer or a Supplier ? 🤔

AP relates to suppliers (eg payments you make) but you've said the amount was paid TO you. Was this a supplier refund & if so, what was the scenario ? This will - in part - determine how the credit should be treated, along with whether you are on a Cash or Accrual ("Non-Cash") basis for GST reporting/BAS (If you're not sure, have a look at your most recent ATO-generated BAS - it will show the basis at the top 😊)

Chris_7677427

Hi Shaz, as I mentioned this was processed in AP (Accounts Payable).

They issued a credit note & a refund as well.

Acctd4

@Chris_7677427 You didn't advise if you're on Cash or Accrual for BAS reporting ?

The Bill Credit should have been entered (as per the Credit Note date) using the same accounts/items as the original Bill entry. The refund is then entered as a Make Deposit posting to your Accounts Payable. This then enables it for allocation in the Pay Bills window.

NOTE: Due to a long-term glitch in the program, the payee name on stand-alone Deposits drops out. Go into your bank register, locate the deposit there, select/add the Supplier name again & save it (Record) This ensures the deposit transaction is listed under the Supplier's name.

In Pay Bills, your deposit will be showing in the list of bills. Select it, choose the applicable allocation date & apply the Bill Credit (displayed at the bottom of the screen, upon selection) 😊

Chris_7677427

Thanks for your reply, however I have reversed the C/N as I should not have processed the credit as well as received the deposit (refund). I have managed to offset the credit and account balance looks right now :-)

Chris_7677427

Oh forgot again, we are on a cash basis.

Kris_Williams

I would check the figures on your tax summary report after this change against the figures you submitted and if there is any difference you can make an adjustment on the next BAS, or revise the previous one. Would be a good idea to check with your accountant if the amount is large, if not I would make the adjustment on next BAS

Acctd4

@Chris_7677427 The Credit entry is required in order to correctly reduce both the expense & the GST components 😬

Chris_7677427

Hi Shaz, the deposit does not enable you to code to a stock item only a G/L code.

The name of supplier is selected but its not showing in the AP.

I deleted the dummy invoice I processed to offset the credit to see what you've said but now I have a credit outstanding. This is why I basically reversed the credit and it was back at zero….as there is nothing owing.

Acctd4

Hi @Chris_7677427

Both the Bill Credit AND the Deposit are required, as per my original instructions.

" … the deposit does not enable you to code to a stock item only a G/L code ..."

Yes, that's why the Bill Credit is required - to reduce the expense & GST:

The Deposit to Accounts Payable:

… will then sit in your Pay Bills list for you to allocate the Credit against:

NOTE: Due to a long-term glitch in the program, the payee name on stand-alone Deposits drops out. Go into your bank register, locate the deposit there, select/add the Supplier name again & save it (Record This ensures the deposit transaction is also listed under the Supplier's name in your Supplier List.

Chris_7677427

Awesome, thanks so much. Where I was going wrong was not selecting 'Accounts Payable'.

Happy, happy! Have a great weekend :-)

Acctd4

Great to hear @Chris_7677427 ! Glad you got it sorted 👏👌😊

Reckon Accounts Hosted Announcements & Important Info

Don't miss announcements and important info for Reckon Accounts Hosted

Button

Reckon Accounts Hosted Ideas & Feature Requests 💡

Do you have an idea for a feature in Reckon Accounts Hosted? Let us know here!

Button