Supplier has taken overpayment via DD -

[alanr]

Supplier has taken overpayment and owes us £38.28. Having updated the supplier account to show a negative balance for this amount, we are now having difficulty in reconciliing this now we have received the funds back into our account. How shold this be posted in Sage?

[brucedenney]

There are two ways to do this...

You can reverse the original payment using the supplier cheque return option in tools>write off refund return...

And then make a corrected payment.

This would work but doesn't really reflect the transactions that took place.

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My preference is to do it manually.

Step 1

I would raise an invoice Tax Code T9 to the mis-postings account (checking the balance is zero on the account before I started) for £38.28 with a description of "Returned over payment".

Step 2

I raise a bank receipt for the £38.28 against the mis-postings account (and then check the balance has gone back to zero. this check I haven't entered different amounts by accident in the two transactions)

Step 3

Do a zero value supplier payment to match the invoice against the overpayment on the supplier account.