duplicate invoices

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hello everyone

Does anybody know the answer to this question?

-What effect would a duplicate invoice have in your purchase ledger?

I think i need to say which accounts i would credit and debit to reverse it?

Thanks a lot

nat

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:duplicate invoices

    I think, and dont quote me, that you have to credit the expense acc and debit the purchase ledger. to reverse the duplicate one off.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:duplicate invoices

    A duplicate purchase invoice would have the effect of increasing your costs whilst a duplicate sales invoice would increase your sales.

    In either case, a credit is required to correct the entry.

    If no credit is received or the error isn't found in time, a duplicate payment could be made and a refund would be required.

    Hope this helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:duplicate invoices

    So would that mean that you would need a credit note in order to credit the duplicate one off? Can you correct this if you didnt yet have a credit note?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:duplicate invoices

    sorry in the case that it was a duplicate purchase invoice.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:duplicate invoices

    It depends on the duplication error. If it is has occured by being the exact same invoice (including invoice number) either by being entered twice (by the clerk) or by being posted twice by the supplier, then you can raise an "internal credit" - usually we would just use the invoice number again, sometimes putting cr or c at the beginning or end of the number.

    If the supplier has actually raised two separate invoices with two separate invoice numbers then the supplier will need to issue you with a credit note for one of them. You can highlight the invoice in your books as not to be paid, but you should not credit it until you receive the official credit note. This is because the supplier's books will also be incorrect and they will need to raise the credit note to correct their sales and, if VATable, their VAT.

    If the problem occurs over a year end then you would need to accrue the credit note to ensure the correct cost for the year is published and you would code the credit note to accruals when you received it the following year.

Categories

Privacy Policy