- In this example, a policy was posted via CH method.
- Sales invoice £560.00
- Purchase invoice £510.00
- The client then incorrectly issues a payment for £600.00
- The client has therefore overpaid in error by £40.00
Firstly, we need to create a ‘Sales Invoice’, which represents the amount overpaid and will be included in the initial receipt reconciliation.
Secondly, we need to create a ‘Sales Credit’, which will represent the amount owed back and will be used included in the subsequent payment reconciliation.
- From the ‘Durell Home Screen’, click ‘Accounts’
- Click ‘Sales’
- Click ‘Starburst’ to create a new ledger entry
- When creating the new entry
- Select the ‘Client’
- Type will be ‘Invoice’
- Input the ‘Date’
- Click the ‘=’ next the ‘Policy holder’
- Insert the ‘Policy number’ including the word ‘Overpayment’
- Click ‘Add’ located in the bottom left
- Copy ‘Policy number’ info and paste into the ‘Description’ ledger line.
- Select the nominal ‘OVER’
- Input the value of the overpayment
- Click ‘Save’ on the toolbar
- Once this has been done, you need to repeat the steps above only this time you will be creating a ‘Credit’ as opposed to an invoice.
- Once they have both been created, go back to the ‘Accounts’ and click on the ‘Cashbook’
- Click on the ‘Starburst’
- Create a cashbook ‘Receipt’ for the amount the client paid (this includes the overpayment)
- In this scenario the cashbook receipt looks like the below
- You then need to fully reconcile the ‘Original Sales Invoice’ with the ‘Overpayment Sales Invoice’
- Finally, you need to go back to the ‘Cashbook’ and create a ‘Payment’ (to pay the client back) for the amount overpaid.
- In this scenario it would be for £40.00.
- You would then reconcile the £40.00 against the ‘Sales Credit’.