Hi all,
I hope someone can guide me here.
I have to create a credit note to refund a deposit to a customer. If I create this credit note the account receivable is going to be negative. Customer paid the deposit cash and now I need to refund.
Post the transaction where you recorded the receipt of the deposit - in edit mode not view mode
Sorry but I do not understand what you are trying to do
You issued a Sales Invoice to a customer for € 5,082
- customer now owes you € 5,082
It looks like the Customer paid cash € 5,082 - he now owes you nothing
You raised a Credit Note for the customer for € 5,082
You now owe the customer € 5,082
Is that correct?
If you want to refund the deposit, just use a Spend Money transaction from whatever account you are refunding him - cash or bank
You have posted images of the transaction lists - you should post images of the Edit screens for the transactions
It is a deposit of 5082 euro, that a customer paid cash. Now he is leaving and I need to return his deposit of 5082 euro. Normally I create a credit note and everything is fine. But I can see that account receivable is stating MINUS 5082 euro. Normally this should be ZERO because he create a Credit Note.
I should normally have a closing balanse of ZERO.
What was the invoice for then?
for a business building that has been rented by this customer.
A Credit Note does not refund the customer. It raises a liability to the customer ie you owe him money. But you have to spend the money to repay him
Presumably he didn’t pay the rent ?
Here you have see the customer statements (transactions report). As you can see Negative.
Customer balans should be after refund of 5082. € 25410
Hi Tut,
I have yes. But still having this strange behavior.
This is not strange behavior. On 11-6-2018, the customer’s balance was 0.00. On 3-7-2018, you entered a credit note for 5,082.00. Now you owe the customer that amount, and that is what the closing balance says. The statement is from the customer’s perspective, so a negative number indicates you owe the money.
I am not sure what your problem is - the statement shows that you owe the customer € 5,082 which is as it should be.
When you pay him the € 5,802 then his balance will be zero.
You haven’t paid him back his € 5,802
When you enter the bank or cash transaction, post it to Accounts receivable and the customer’s subaccount.
I have done exactly what you advised but now the customer statement report is I think incorrect.
This customer paid 10 invoices 2541 and 1 invoice 5082. total amount is €30492,- I am refunding him €5082,- which should leave him at a balans of €25410,-
How is this possible? Am I missing something or doing something wrong?
I am not sure Google is translating all your terms correctly. Can you switch your language preference to English and post a screen shot of the same customer statement? This time, include the entire statement, including the header. You can obscure the customer information and anything proprietary, but I need to see the dates.
Let’s go back to the beginning, since your statement covers everything from year 0001. The first thing you have recorded for this customer is the receipt of 2541 in cash on 15-9-2017, before the customer owed you any money. What was that for? Was it a deposit? Was it payment in anticipation of a sales invoice?
After that, you raised a sales invoice for rent in the amount of 2541 on 21-9-2017, so the customer’s balance was zero. Was this sales invoice related to the cash receipt mentioned above? Whatever the situation actually was, the accounting record shows that as of sales invoice #201709 on 21-9-2017, neither you nor the customer owed the other money.
Then you issued a sales invoice for a security deposit of 5082, and the customer paid 5082, although I don’t know what your abbreviations mean. At this point, your balance was zero again.
After that, things look quite ordinary: you raise sales invoices on a regular basis and the customer pays fairly regularly. Occasionally, you send the next invoice before receiving money for a previous one, but the customer always catches up quickly, bring the account balance back to zero.
Then, in accordance with the rental agreement, you issue a credit note on 2-7-2018 for 5082. So the statement shows that you currently owe this customer 5082.
Your mistake may be that you issued the sales invoice for the security deposit. Sales invoices are for when you have earned revenue. A deposit is not revenue. It represents a liability you owe to the customer. You should have simply recorded the deposit as a receipt, posted to Accounts receivable and the customer’s subaccount. Then, after every receipt from the customer, the account would have shown you owing 5082.
Or, you could have posted the deposit to a dedicated liability account. That would have kept deposit accounting out of Accounts receivable.