Sales Postings

LauraY83

I wonder if you can help me - Ive wracked my brains and Im stuck!
I have the following scenario

We raised invoices in July 07 and our customer didnt pay these by Jan 08. For arguments sake lets say these invoices were for €50
They had also made an overpayment in the same month (again for arguments sake say €100) so I just posted the cash on account showing as a credit balance on their statement.

I wrote to the customer and told them about their overpayment but they never reclaimed it. So my boss told me to take the cash in and mark off the outstanding invoices so I raised an invoice for €50 and applied this invoice to the outstanding invoices and the credit note ergo cancelling them all off so the account looked tidy and balanced.

Now, the customer has paid these outstanding invoices (typical) and I had a payment I could not apply as the invoices had just been marked off. So I posted the payment along with other current invoices they had paid and posted the difference to exchange gains.

So I now have an artifical exchange gain in the exchange gain/loss account that I need to journal out.

My boss has told me to DR exhange gain or loss and CR sales ledger control account.

But on thinking about this if I post a CR to SL cont a/c my sales ledger will not reconcile at month end.

So where should this DR actually go?

The only things that should appear in SL cont a/c are gross value of invoices and payments. There are a few NL journal entries in there but they are accruals so just go in one month and out the next so not affecting the account total on an ongoing basis!

LauraY83

Thinking about it some more, would I post the CR to Sales/Turnover
Increasing the value of sales by the amount of extra cash received?

Bluewednesday

Why don't you just raise a cheque and send the money back to him?

If not I would still leave it as a credit on their account