Sales Postings
LauraY83
Registered Posts: 4 New contributor 🐸
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!
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!
0
Comments
-
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?0 -
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 account0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership