cancel old bill

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  • Question
  • Updated 4 years ago
  • Answered
  • (Edited)
Hi,

Over a year ago we received a bill for $1250 from a supplier for some advertising signage we wanted.  I entered the bill like normal, and paid $250 as a deposit.  A year later and the supplier has said they can't do our job and has refunded me the $250. 

The open Bill over the last year has been bothering me and I just want to see it cancelled.  How do I do this correctly?



My guesses???...
Enter a credit from the supplier for $1000.
Enter a second credit from the supplier for $250.
Deposit the refund of $250

I just don't know how it will all line up, I want the end result to be $0!

Thanks
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Rebecca

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Posted 4 years ago

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Mirko, Alum

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Hey Rebecca, this might be best to have your Accountant deal with a Journal entry.
Hi Rebecca

Yes you are on the right track just one more step - you raise the credit for $1250, when you do the deposit use the supplier name in the 'name' column - the 'account' is Accounts Payable, the amount of course is the $250 refund....then go to paybills, you will see the $250 (deposit) as a bill, click on the bill, then apply credit of $250.

Kim M: 0429 305300 E: kim@kwikbooks.com.au