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
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 !!!