Supplier and Customer Accounting Query

Hi All,

I hope you are well?

I have had a scenario where one of the supplier is also classed as customer to the business. The supplier provides flowers to the business but then from time to time the business will invite the supplier to have their stall during fayres to promote their flowers so now the business is classed as a customer. But I had been notified that they will not pay the stall fee however the business can deduct the amount owed to the supplier against their outstanding balance.

There is no Sales Invoice etc just an email, how would you record this on Sage 50?

Many thanks for all your help

Kind regards

Shamil

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,132Moderator, MAAT, AAT Licensed Accountant
    Shamil

    The business has supplied a service so a proper invoice should be raised and included in the turnover.
    I am not familiar with Sage but this could be settled via a contra entry onto the supplier's account. No actual money need to be exchanged.
    shamil91
  • Clintm15Clintm15 Well-Known FarehamPosts: 232Registered
    edited December 6
    Seems like a simple contra journal to me.

    DR purchase ledger control
    CR rents receivable

    On Sage, it should be - Modules > Nominal Ledger > Journal, or something like that.
    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
    shamil91
  • shamil91shamil91 Posts: 93Registered
    Hi Marie Noelle,

    That is what I was planning on doing setting up an Invoice and contra it against the suppliers account.

    Many thanks

    Kind regards

    Shamil
  • shamil91shamil91 Posts: 93Registered
    Hi Clint M 15,

    Thank you for your reply.

    I was considering on raising an Invoice as Marie Noelle said but both methods do actually work.

    Kind regards

    Shamil
  • Clintm15Clintm15 Well-Known FarehamPosts: 232Registered
    shamil91 said:

    Hi Clint M 15,

    Thank you for your reply.

    I was considering on raising an Invoice as Marie Noelle said but both methods do actually work.

    Kind regards

    Shamil

    Our methods are the same, it's just that I assumed the name of the income account.
    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
    shamil91
  • shamil91shamil91 Posts: 93Registered
    Hi Clintm 15

    Thank you, your help and Marie's has been really good.

    Kind regards

    Shamil
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