Customer in A/R Ageing Summary with a zero balance in Reckon Accounts Enterprise 2018

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We have a customer with a zero balance in the A/R Ageing Summary. Please refer to screenshots.This issue has only happened with the tax invoices that have a negative number in Amount column.







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Charlene

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Posted 9 months ago

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Charlene


Those negative line items in your invoices are no worries, and nothing to do with the phenomenon you are seeing in the A/R reports. 

....   I suspect you are seeing REPORTS with 0.00  values (rather than no line at all when the customer is all paid up),  BECAUSE you need to allocate the customer's payments against the invoices which relate to those payments.  Like a reconciling process,  the A/R  system needs to find out where all those PAYMENTS have been allocated to.  Otherwise,  you have a heap of invoices (with no allocations of payments)  LESS a whole heap of payments (for unknown invoices),  and the net result is 0.00 which gets listed on the report.

You'll possibly see the status of your TEST CUSTOMER has having a whole bunch of unallocated credits (being all the payments yet to be allocated to the invoices).

Check the MENU:  Receive Payments
and select your TEST CUSTOMER/   See if there are CREDITS sitting there to be allocated.




Gary


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Charlene

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Hi Gary,

Thanks for the quick response.
We have allocated the customer's payments against the relating invoices.

Yes there are a heap of credits sitting against TEST CUSTOMER. See screenshot. 
Charlene

So,  if you allocate the 'remaining' unallocated CREDITS  to invoices that are not fully allocated yet,  do you have the desired result in A/R reports that you were initially concerned about?

Gary
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Graham Boast, Accredited Partner

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Hi Charlene 

This issue is caused by the negative lines with a tax code, and they are a worry (sorry Gary).  Applying the credits will never work - they just never apply.  It won't happen every time you use a negative amount, but it will happen.

The 2nd issue is that you are recording a sale (the tax invoice), and a purchase (the reimbursement) in a single transactions. Although the net GST is the same, the GST regulations require you to  record the GST from the sale and the GST from the purchase separately.  Your method of recording this will result, for the invoice shown,  1A = 82.47.  The GST regulations require you to show !a = 103.59 and 1B =  21.12 .

The 3rd issue is that for the purchase you need a Tax Invoice from the seller of the scrap, or you need to create a Recipient Created Tax Invoice for the purchase.

The short answer to your issue is to link the scrap metal item to a clearing account (a dummy bank or credit card account), process it in the invoice without a GST code, and then buy the scrap metal from the Clearing Account.  This paper that I wrote explains the process in more detail 
https://reckonhelp.com.au/articles/reckon-accounts-business/recipient-created-tax-invoice-rcti-selle...

In your case, the scrap metal is equivalent to the cattle selling costs.  If you need to also create a RCTI for the purchase, then this paper that deals specifically with scrap metal may help.
https://reckonhelp.com.au/articles/reckon-accounts-business/rcti-purchasers-perspective/



Graham 0409317366
graham@reckonjhelp.com.au



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Charlene

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Thank you very much Graham. Will give it a go! 
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Charlene

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Hi Graham, I have read your article. What do you suggest we do as these transactions are from 2017? I am scared to change anything from that long ago as the company tax returns have already been submitted.
Top response, Graham ... Good that you sorted this well. Cheers, Gary
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Charlene

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Thanks for your help Gary