AP Credit Note

Hello,

Please advise how to correct entries:

1. We received a credit note from a supplier and entered in AP as a "-"

2. When the cheque was received with refund it was entered in AP with all JC information (incorrectly)

3. Deposit was entered in Cash management to Cash clearing account

4. Through Job Cost the amount deposited was transferred from cash clearing account to JC and GST account. 

AP was cleared by issuing manual cheque, so i can't change anything in it.

Now the problem is, that there is still a negative amount in JC and GST account because entries #2 was done incorrectly.

Please advice how to fix it.

  • 0

    I would void the manual cheque. I'm not sure that I understand what was done in entry #2.  Was an invoice entered in AP?  The way that I would have handled the entire transaction would be as follows.  1. Enter the credit invoice in AP, 2. When the cheque was receivied for the refund enter an invoice in AP to clear out the original credit, 3. Enter an AR invoice to be able to apply the refund cheque.  This would make your GST account balance with AR and have all entries going in the correct direction for job cost.