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Dear All,
We made an advance payment to a supplier of US$ 20,000. Against this advance payment he supplied us stock for value of US$ 15,000 and he return/transfer the balance amount of US$ 5,000 to our company account. Now question is that, how I will adjust this $ 5,000 in that supplier account as amount received back?
Thank you
Rashed
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Are you on a Business Ready Licensing model? If so, you have Customer/Vendor transactions. Setup a customer that matches the vendor, do a misc cash receipt from the "customer", then apply the customer credit against the balance prepaid in the vendor account. The misc cash receipt updates the bank account with the returned amount and the cross application of the credit to the vendor's account zeros out the two balances.
If you do not have BRL and the Customer/Vendor Transactions, you want do do the same thing but manually create the debit/credit transactions in RM and PM. Receive the cash receipt and then wipe it out with a memo and go to payables and enter a matching offsetting memo to wipe out the balance in the vendor's account for the refund.
The entry which I made at the time of payment was, DR Advances to suppliers Bank CR Bank And I have to correct bank as well as advances to suppliers account. Means to increase bank balance and reduce advances to suppliers balance.
Secondly in suggested journal entries AP control account once credited which is not debited before. In this case how I will reconcile this account?
Regards
Rashed
Hi Rashed.
Firts step is to deposit the 5000 back to your bank using the Bank Transactions in financial.
This will reset your bank balance and your reconcile.
When entering the transaction select a GL suspense account for the cross entry.
Your entry will be
DR GL Bank
CR GL Suspense.
Next step - in AP open a Debit Note transaction on the Vendor Account and Debit the GL suspense account.
This will adjust the vendor balance and clear the GL Suspense Account.
Your Entry will be
DR GL Suspense Account
CR AP Control Account.
When posted apply the balance of the cheque to this debit note. This will clear all open docuemnts and place the transactions in history bringing the vendor account to zero.
Hope this helps
Hi Rashed,
Thank you for your more info.
In my knowledge, We can directly adjust the vendor balance and our bank account. But Your payment is $20000 and invoice is $15000. So you can't close the payment without apply the balance amount .
Okay we will will wait for experts solution to this problem.
Thanks
Hi ,
Actually the first payment we made is also detucted from our bank account and we have to mention in the vendor account in the same period to recouncile our bank account as well and how we can delete the actual payement and enter it in the vendor with the reduced one and how our bank account will be tally as its in differnet months
and in the other hand we recieved back the amount we is credited in our bank account in differnet period . so how we will record that amount to recouncile our bank account.
thats why we can't delete it and we have to adjust it .
regards
Rashed
Hi,
Can I know the reason why it s not work? Otherwise you r not like to do this way ?
Regards
Jeganeedhi
Dear Thank you , but this is not going to work is there any other solution ?
regards
Rashed
Rashed,
It is really good scenario. we can't enter in negative cash receipt in payables. So you can void your US$ 20,000 payment. and create new payment for US$ 15,000. any apply this new payment aganist that invoice.
If you adjust that $5000 through GL transaction then you need to create dummy invoice to apply the balance amount of $20000.
This is my opininion.
Regards
Jeganeedhi
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