I overcharged a customer for a couple of months by mistake, and I'd like to credit them the overpaid amount. Is it acceptable to use a negative value line item on their latest invoice, or am I required by law to issue a credit note?
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Stupid accounting question (credit note)
- Thread starter JayM
- Start date
Why not just mark down the price of the item on the new invoice?
The paper trail wouldn't be accurate but I'm not an accountant so that might not be legal. Anyway that's the way I'd play it
Probably part of the school of creative bookkeeping.
The paper trail wouldn't be accurate but I'm not an accountant so that might not be legal. Anyway that's the way I'd play it
Probably part of the school of creative bookkeeping.
issue them a credit note where the only real difference is that instead of tax invoice written on it, it says credit note, and you refer to the invoice references that were overcharged.
Do the latter as mixing it on their latest invoice will be confusing. Rather attach the credit note with the their latest invoice, or else queries will come through which will delay payment. Although it sounds like they don't really check...
Your records are then cleaner too, not to mention theirs.
Do the latter as mixing it on their latest invoice will be confusing. Rather attach the credit note with the their latest invoice, or else queries will come through which will delay payment. Although it sounds like they don't really check...
Your records are then cleaner too, not to mention theirs.
Thanks, have gone this route.
For the love of spaghetti monster, please don't just pass a journal and then freak out when your stuff doesn't balance like my billing clerks. I wish I could just fire the lot. Year-end is the worst because they just stuff around with their kung-fu accounting and then at the end of the day I'm liable for any tax and vat and explanations to other partners as to why there are irregularities.
good on you for using proper accounting methods to rectify this
good on you for using proper accounting methods to rectify this
It's just a small side business but I started using Xero in 2014 and got a proper accounting firm to do VAT/income tax/statutory filings. Well worth a couple of grand a month to make sure it's all done properly.