Supplier Credits on Sage

A-Vic

We currently are in the process of Year end for a client and for some reason there is a credit amount showing on one of the suppliers - we know there shouldn't be and would like to clear it but how?

We thought of journal but dont want to effect the bank or raise another invoice also the suspense account doesnt want to be used.

Can anyone tell me where we can take the credit amount from?

Thanks


Vic

(i know it probs an easy answer but i have a brain block)

jilt

If your absolutely certain that this supplier should not have a credit balance then I would say something been posted twice, ie a payment or a credit note?

If you can't find anything and it's not a significant amount then our usual practice is to write it off to purchases.

Paul24

A-Vic wrote: »

also the suspense account doesnt want to be used.

You shouldnt allow the suspense account to have a say in the matter.

Can you not find the origins of the credit?

crispy

Hello,

Could the balance either be: -

1. A payment on account (ie: where they don't have credit terms with the supplier)
2. Unallocated Credit Note (for goods returned/rejected where credit has been issued and not yet used)

If the amount is immaterial and after checking through supplier statements (if you have any) it appears to just be a processing error then write off to purchases. It the amount is more significant I wouldn't just clear it off without consulting with the client?

A-Vic

Spoken to the client they are going to try send us supplier reports shortly (intime for next year end)

Jon_1984

Most times when this has occured at work it turns out to be a payment posted twice (e.g. I have posted when it went through the bank and then seen "visa" on the debit card slip and assumed it was on the credit card a few days later - bank postings are a dangerous thing to do pre the first coffee of the day)

sheelagh

Ask the supplier

This could be a missing invoice. If it is, then costs will be understated.
Often the best way to get to the bottom of these things is to check against the supplier statement.
In an ideal world the balances on a purchase ledger should all match those of the suppliers' sales ledger.
You might find that the supplier statement shows the same credit balance, in which case the credit balance is correct.
If it is not possible to reconcile to the laest monthly supplier statement, ask the supplier for a full activity report and check each your ledger against theirs from the last point they agreed.
Obviously this could be a time consuming task - if you are in practice, you might want to ask the client to do this.

A-Vic

It seems its down to a discount given