Supplier Overpayment

For example a supplier sent an invoice for £105, mistakenly sent a cheque for £150 which was cashed. They have since sent a refund cheque of £45. In Sage already raised a supplier invoice for £105 but not sure how to post the payment of £150.

When enter the payment of £150 you should be asked if you want to post the difference as a payment on account, say yes to this.

1. Raise an invoice on the supplier for £45 with a T9 tax code to the suspense nominal code.
2. Go into Bank -> Supplier, select the supplier and pay both the payment on account and the invoice. This will clear the supplier account.
3. Raise a bank receipt for £45 with a T9 tax code to the suspense nominal code. This will correct the bank account and the suspence account.

The above assumes you are on standard VAT accounting, if you are on VAT Cash Accounting, you need to make the entries with the relevant tax and net amounts and tax code.

Posted in: supplier