how can I apply a supplier credit if the supplier has no unpaid invoices

  • 1
  • Question
  • Updated 3 years ago
  • Answered
I need to make a payment to an 'umbrella' company who manage payments for multiple suppliers.  I have received a credit from one of the suppliers but they have no unpaid invoices that I can apply the credit against.  The umbrella company has applied the credit at their end.  How can I process the credit as being applied to my payment?
Photo of Jo Arnold

Jo Arnold

  • 532 Points 500 badge 2x thumb

Posted 3 years ago

  • 1
Photo of DebonAir

DebonAir

  • 5,952 Points 5k badge 2x thumb
You can enter the credit and leave it on the account for next time. If you paid to the umbrella company and they applied a credit, then your account should also be in credit with them.
Take up the credit on the next payment if there is one. If not, ask for a refund.
Photo of Carrie

Carrie

  • 1,066 Points 1k badge 2x thumb
Hi Jo.  I also have an umbrella company to whom I pay the bills for multiple suppliers.   

Firstly, in order to pay the invoices from individual suppliers using just one bank payment to the umbrella company, I use a clearing account (a dummy "bank account" which I set up in Reckon).  in the Pay Bills screen I pay all the individual bills from the clearing account and I then go to "Transfer Funds" in the banking menu and "transfer" the money from the real bank account (so that it matches my bank statement) into the clearing account.  This then puts the clearing account back to zero. 
Secondly: In order to apply a credit from a supplier when I have no invoice to apply it to, I do a general journal entry which puts a credit to the COGS account which I purchased the goods from and then on the next line I select the clearing account and put the figure in the debits column.  in the Name column for both lines I select the supplier.
I hope this makes sense - let me know if you would like more info.

Another thing I find useful is under Accounts Payable (in the chart of accounts) I have a sub-account for the umbrella company.  I then select this sub-account from the drop down box on the enter bill screen. This means that when you go to the pay bills screen you select the sub-account and you can just see all the relevant invoices to be paid and you can easily generate reports too.
Photo of Jo Arnold

Jo Arnold

  • 532 Points 500 badge 2x thumb
Hi Carrie

Thanks for your reply - sounds like a good option.  I'll give it a go.  I especially like the idea of the sub account.
Photo of Carrie

Carrie

  • 1,066 Points 1k badge 2x thumb
It took a bit to get my head around initially but it is quite simple when set up.