managing a payment between a customer & a supplier a/c

Mal

We have 2 accounts with a charity organisation that previously held bank accounts in the name of our charity (it was the parent of our charity). The donations collected are logged in a Customer a/c. The charges they make to us, for postage/photocopying etc., are recorded in a Supplier a/c.
When sufficient funds have been collected, they write out a cheque to us and the transfer is affected. Until now, we have settled the Supplier a/c on an annual basis (as it doesn't amount to a large amount).
This year, the organisation decided to write a cheque to itself (from the a/c it owns, but is in our name) to clear the amount owed to it by ourselves.

So no money has hit our bank a/c and I at a loss on what Sage transactions I need to undertake to reduce Supplier and Customer accounts by the same amount - given I don't believe I can issue refunds or credits.

Thanks for any help.

Mal

Do I just enter 2 identical Supplier and Customer Credit Notes?

angharadmai

I should think you should use a contra bank account to pay off both the customer and supplier accounts.

Jon_1984

Yep - I would use a contra - simply enter a payment made and a payment recieved through a cashbook to the relevent accounts, and then reconcile them off together.

Mal

Many thanks, have done that.


Mal.