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ReportWe have a customer who has a $55 CREDIT balance that they are not going to use and we do not want to refund it. How do we clear the credit?.
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We have a customer who has a $55 CREDIT balance that they are not going to use and we do not want to refund it. How do we clear the credit?.
Hi, create a dummy invoice in Sales Journals, post it, then apply the balance in Customer Ledger Entries.
Whether you refund it, or cancel it using other ways, the records will be left in the system.
Hope this helps as well.
Thanks.
ZHU
This customer has a $55 CREDIT balance they are not going to use and we do not want to refund. We want to clear this credit balance of the customer's account. I'm not understanding how your reply relates to my question.
And...we are in the USA.
[/quote]You have to create a line where you credit the G/L account you want to use for the loss and debit the customer in question with the amount of 55$.
The you will zero out the transaction on the customers account and the 55$ will be recorded as revenue.
Through a journal, you can create an entry to the customer (document type blank or invoice) with a balance account number of the desired general ledger account for the writeoff. Be sure to use the Apply Entries, and apply this entry to the credit(s) on the account.
This customer has a $55 CREDIT balance they are not going to use and we do not want to refund. We want to clear this credit balance of the customer's account. I'm not understanding how your reply relates to my question.
And...we are in the USA.
There are basically two ways you can do that and the best approach is also dependent on the accounting regulations in your country.
You can either create a credit memo against the original invoice og you can post a transaction in a journal where you credit the customer account and debet a G/L account for "Loss on accounts receivables".
In a journal you will then use no document type, customer as account type for the credit transaction and G/L as account type for the debit transaction.
In my country it is mandatory to use the loss on A/R approach if collection of the outstanding amount fails.
It's a great question and an easy answer.
Typically, in BC Money in is always a Cash Receipt, no matter the source and Money Out is a Payment Journal (typically).
The ability to refund a customer is built right in, so go to a Payment Journal and in Document Type choose Refund.
The Account Type would then be a customer, pull up the customer you wish to refund and then go to Process>Apply entries and find their Credit or Payment you wish to Refund and then cut the check or send the ACH!
Boom, you are good.
Let us know if you have any questions:
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