I overpay supplier

Good day all

I have overpaid a supplier and he has paid the money back into my bank account.
I have googled how to handle this, but I only get explanations on how to handle it
when a customer overpays me.

trust that someone can point me on the right direction.


You will have to handle this via a Journal Entry.
Lets say the amount due to supplier was Rs.40,000, you paid the supplier Rs.50,000, which means you overpaid the Supplier by 10,000. This will show a balance of 10,000 in your Supplier’s Ledger

Supplier Ledger will look something like this

When the Supplier refunds the money, you will have to pass a Journal Entry

After the JV, Supplier Ledger will look like this

Hope this helps

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Good day Manan_Shah

Many thanks for your response !

I am an engineer ( not an accountant !!! ) so I am very scared of this , but I will give it my best shot !!!

Best regards !!!

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