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Hi All,

When we receive payments from a large retail company sometimes they hold back money to stop us from owning them more then they owe us, there's commissions due on all sales we make to them witch is deducted from the money they owe to us. These commissions are billed monthly and we a get credit note that gets logged onto the customer account that is fine but the additional payment that get held I am not sure what to do with it

Once we our issued payment, they issue a remittance slip that breaks down how much is being paid to us, what invoices are being paid and any provision that are held back. the problem i am having is that when I clear the invoices being paid and any credit we owe them on the customer receipt module, if there is an additional deduction being made then the payment receipt does not match and its not accurate in the bank/reconcile.

How do I log this temporary payment so that the customer account balance will show this money being owed to us, but also have that payment deducted from the payment receipts when we pay this and then added back on a separate receipt when it gets paid back. :/

advice would be great

Thanks

Are you off setting a purchase ledger account against a sales ledger account?

no

So leave the invoice part paid and when the credit is issued it can be matched off and be fully paid.

the invoice will show as part paid and still outstanding and this isnt the case.

the problem i have is the invoices are paid in full, then a separate deduction is occasional made, then paid back on another receipt.

what would be the best way to log this deduction to show the customer owes us the money, but also have it deducted from the total being paid when doing a customer receipt to get an accurate sales receipt?

if i log a credit not on there account, and take it away from the payment receipts when the money has been deducted, the totals add up fine. but it wont show the correct customer balance as this money is actually owed to us

"the invoice will show as part paid and still outstanding and this isnt the case."

So what paid the rest of the invoice then?

Maybe you should have a supplier account for them and enter the commission as a PI, then offset the money you owe them on the purchase ledger against the money they owe you on the customer ledger with a "contra entry"

Still not clear what is going on, could you list out a sequence of transactions.

Hi Bruce,

Thank you for your patience

Ill break down a Remittance Slip:

Payment Detail

Payment Number : 23366986
Payment Date : 22/4/2015
Payment Amount : £0.00

Invoice Number Invoice Date Net Amount Paid
150421_PROVISION_FOR_RECEIVABLES 21/4/2015 -£785.29
0497 26/3/2015 £237.86
0501 26/3/2015 £547.43


Two invoices have been settle with this payment, 0497 & 0501, but the total payment receipt is £0.00, they added a temporary deduction of 785.29 that they call Provisions for receivable, now this payment is paid back to us later on, on another receipt. Its a temporary deduction to stop us from owing them more then they owe us. Deductions are also made for credit notes, refunds and there sales commission.

The problem i am having is if log this Provision as a credit note in order the have this amount deducted on the payment recipient to show an accurate figure in the bank and clear the invoices that have been paid the customer account wont show this payment as money being owed to us still.

When the money has been paid back, there wont be any outstanding invoices for that sum in order to add them to the second payment receipt so I can post the correct amount again in the bank.

Hope this makes sense

Sorry the transactions are being jumbled up when posting, so i have attached a excel example

The provision is not an actual transaction.

It is a memo to allow for something that is expected to happen in future.

I think you just leave those invoices outstanding and unpaid.

I guess eventually the memo will be reversed and a real transaction made.

From your point of view, the monies are still outstanding, even though they may for their internal purposes offset the transaction against a future transaction, you should not and need not mirror this because there is a risk that a provision is never reversed and the transaction never paid.

You have not given the whole story in your example so it is impossible to give a whole answer.