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Handling invoice and credit not

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.

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    Have you posted correctly the credit note and the new invoice in the supplier's account? The difference should be your bank receipt.
  • Nags6Nags6 Registered Posts: 2
    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.
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    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.

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