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garethaethwy
October 1, 2024
Question

Credit note from different supplier

  • October 1, 2024
  • 1 reply
  • 0 views

We were sent an invoice from a supplier that was disputed. Whilst we were discussing the dispute the supplier was taken over by a different company with a different VAT number.

How should I handle this? I've tried doing it as if it was a contra payment but that doesn't work as both companies are suppliers.

1 reply

paul72
paul72
October 1, 2024

Hi @garethaethwy 

You could use a Journal to move the amount from one Company Register to the other.

It would show as a Credit on the Company A register (to cancel the invoice) & a Debit on Company B to cancel against the Credit Note.

(I think this would be Accounts Payable - Credit Company A - Debit Company B but I'd have to play around to make sure it worked)

 

However, personally, I would simply enter the Credit Note in the old company name.  Add a Memo to explain to Future Self & zero the Invoice & Credit in Bill Payments.

 

Presumably, the new company is not going to hold the credit for future purchases (it has closed it against the disputed invoice) so you don't need to hold the credit forward in the new supplier name.

 

Hope this helps.

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