Handling invoice and credit not

Nags6

Hi

I am in a situation where I feel what I have done is not correct. Can somebody comment on my situation?

I received a utility bill for last quarter Nov'14 and the payment had been taken for that invoice. Later in the new quarter in Dec 2014, they sent a credit note for the November invoice and reissued a new invoice for the reading that I provided and refunded the variance into the bank account. I reconcile weekly. Therefore, I put through the refund as bank receipt and reconciled.

Now the utility supplier account shows a credit balance on account which is the amount that they refunded.

How do I rectify the credit balance on account?

Thanks you in advance for your help.

MarieNoelle

Have you posted correctly the credit note and the new invoice in the supplier's account? The difference should be your bank receipt.

Nags6

thank you for that.

I have posted the invoice and credit note in the supplier account I have the difference. What should I do to rectify it?

That is the amount they have already refunded and I have posted that as BR while reconciling.

CeeJaySix

It sounds as if you've posted the cash receipt against the supplier account to give you the credit balance, but haven't posted the credit note to dr supplier a/c and cr expense.

If you have posted the invoice, the payment, the credit note, and the receipt, you shouldn't have a difference.