How do we account for a refund? As an example, we hired a floor sander to sand the office floor. We had to to pay a deposit for this, which came out of the initial payment made. On return of the item, we have been refunded over 50% of the hire charge. I just don’t know how to account for this.
Secondly, how should we be dealing with an overpayment? We have a client in the Virgin Islands who has overpaid an invoice (due to transaction fees and differences in exchange rates). Our invoice within Sage is for £330, and the payment received is for £339.86. I therefore cannot match this against the invoice logged within Sage, and can’t match it without making an adjustment. The only adjustment I seem to be able to make is to take money off—I cannot add on an additional payment…
Thanks in advance!
Oli