Credit notes into the Nominal Ledger

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hi!

Can anyone help to explain how I enter a credit note into the nominal ledger, esp if the amount you are crediting has been banked. Or where I can go for a good explanation of the process. I am willing to buy books if someone can recommend.

Thanks in advance,
Sarah

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Credit notes into the Nominal Ledger

    A credit note would be entered on the customer or suppliers account. If the original invoiced amount has been paid, then it will show as money owing and can either be deducted from the next payment or refunded.

    When entering the credit note to the customer/supplier, the other side to the entry would be the code used for the original invoice and as such would adjust the nominal.

    Once the credit has been entered on the customer/supplier account, it will be included as the other part of the nominal posting as part of the total debtors balance (if a customer) or creditors balance (if a supplier).

    The bank side of things is between debtors or creditors and bank in the nominal.

    Hope this helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Credit notes into the Nominal Ledger

    Thanks for the reply.

    I think that I had just got myself a bit confused over it!

    With what you are saying if I start with the subsidiary ledger and follow that through to the nominal ledger the double entry is clear.

    Thanks for the help, I will definitely be using these message boards again if I have any more queries!
    Sarah
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Credit notes into the Nominal Ledger

    Glad to help - you're welcome.

    These forums are a good source of help from many qualified in business posters as well as students.

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