Credit appearing for Supplier

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  • Updated 5 months ago
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we have a bill that we need to pay for a supplier. we pay the full amount through pay bills, and the full amount is sitting waiting in the 'online banking screen' however when we go back to pay bills screen there is an amount sitting there for the same supplier as a credit. There is no credit owing. We have deleted the invoice and re-entered and the same thing keeps happening, a random Credit is sitting there. Any idea what is causing this? 
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tjoseph

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Posted 5 months ago

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Robert Smeallie

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Hi,
Could it be that even though you have the bill sitting in the Online Banking screen you need to process the transaction to send it to the supplier's bank's online portal? Have you set up online banking yet? 

When you create a payment with Pay Bill, it should initially be posted to the Electronic Clearing Account then this amount goes to the bank account of the supplier via Electronic Funds Transfer and the amount then needs to be deducted from your Business Cheque Account using a Journal entry, as the Electronic Clearing Account is only an Chart of accounts item, not an actual bank account.

Robert Smeallie
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tjoseph

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Hi Robert, 

Thanks for the post - even after the bill has been paid (and sent to the bank via the aba file) a random credit is appearing for a random amount for the supplier. When we clear out the credit - it just keeps re-appearing. This has never happened to us before.
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Robert Smeallie

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Hi,

That sounds like a Credit raised to the Supplier Account, as you would expect if they are receiving a payment, which matches your Debit from your Bank Account. Now you need to do a Journal entry for Accounts Payable (Liability) to match the amount showing as Credit to the Supplier account and that should clear it. Double Entry Bookkeeping - you gotta love it!

It sounds like a spurious error in the accounts when you say it is a Random amount. Is it the GST component not being accounted for that's stopping the transaction from going through?

Robert
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Graham Boast, Accredited Partner

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Hi tjoseph

I suspect your bill has multiple allocation lines, and one of these lines uses a negative value with a gst code. If this is the case, you will need to delete these lines from the bill and enter them as a bill- credit.

In general, negative lines on bills or invoices with gst coding should be avoided. You won’t get this issue on every transaction, but when it happens the above fix is the only way you will clear your random credit.

Graham Boast 0409317366
Reckon Accredited Consultant
graham@reckonhelp.com.au