Sage Credit Note Question

[Mandij87]

Hi, I am new here, and only started working with sage last week! I hope you can help me!

I have received a credit note from one of our suppliers which I have entered on sage. The amount has now been paid to us, but I can't seem to enter this on sage. Each time I try to show that it has been paid, it flags up saying "There is an unallocated cheque balance of £***. Please remove this before posting the transaction."

Can someone please tell me where I am going wrong and how I can mark these credit notes as payment received?

Thank you!

 

[johndon68]

You can either use the Customer Refund option or, if you want to do it manually, you'd do the following:

1. On the supplier account raise an invoice for the gross amount with a T9 tax code to the suspense nominal account.
2. Go into Bank -> Supplier, select the supplier and pay both the invoice and the credit note/payment on account. This will clear the supplier account.
3. Enter a bank receipt for the gross amount with a T9 tax code to the suspense nominal account.

The above applies if you are on Standard VAT Accounting, if you are on VAT Cash Accounting, the transactions need to be entered with the appropriate tax code, net and tax amounts.

John

 

[Mandij87]

I can't seem to find a suspense nominal account! Any idea what else it could be under? Sorry to be a pain! xx

 

[johndon68]

Assuming a default set of codes, it would be 9998. In reality you can use any code as the process debits and credits the code so the overall effect is zero but using Suspense keeps it out of the way so to speak.

John