Hi Jamie & Pam
There are a few options depending on your particular circumstances ....
- Firstly, have these old amounts been reported as expenditure in prior ATO/government reporting (eg BASs, Tax Returns etc)?
& (if you're GST-registered) ....
- Do any include a GST component
- Are you reporting on a Cash or Accual basis (If you're unsure, check your BASs to confirm)
If so you will need to ensure you have an in/out trail in your transactions reflecting this upon "removal".
If you report on a Cash basis & have minimal overpayment transaction amounts (eg for ones under $10), I'd suggest just editing the original bill to match & re-ticking to re-allocate the overpayment. However, if you report on an Accruals basis - depending on what was lodged at the time - you may need to create a General Journal entry to reverse these. If you're not GST-registered & simply to remove these credits from your A/P ....
- Using the last date of current month/quarter/year as applicable, enter a GJ (crediting Accounts Payable) & select the applicable Supplier in the "Name" column. (The debit side can be posted to either Opening Balance Equity or a Suspense account if you would prefer to be able to pinpoint these for checking down the track)
If you ARE GST-registered & have previously reported these credits, you can offset this by debiting the same original account & tax code (as per the old, related bill) in your GJ.
- Once you've created the GJ, go into Pay Bills & you will see you now have a line in the list there for the applicable Supplier, representing your GJ. When highlighted/selected, you will also see the credit (overpayment) amount in Total Credits Available.
- Click on "Set Credits" to allocate & edit the Payment Date to match you GJ date, then click on "Pay Selected Bills" to process.
Pam, if you're using RA Premier or above, you may want to turn on multi-currency as RA enters the value difference automatically, posting it to an "Exchange Gain/Loss" expense account. Alternatively, you could create an additional GJ to move it to this account.
TIP: As you proceed, check the affected accounts to ensure amounts are debiting/crediting correctly & once you've got it right, memorise the GJ transaction(s) so you can easily re-use them if required.