How do I enter an amount that I have paid but I have not received invoice for

What I have is a purchase for say £100 for Microsoft Licenses. So I paid £100 to the company, but the exchange rate worked out that the actual bill was £97. So my invoice is £97, but I have actually paid £100 on the bank account, so I have £3 credit with the company.

Where do I put this £3 as I am not ofsetting the amount against any invoice as the invoice is £97.

In which currency was the original invoice and in which currency was the bank account you paid from?

They are both in Pounds. The company takes payment for £100 and then purchases the licenses. If I need to pay more, they debit my account with the balance and if I have overpaid, they credit my account (my account with them, not the bank account) with the balance. I don’t deal with the actual currency transaction - they do.

Ignoring currency considerations for the moment, is the transaction being processed though Suppliers. If yes then your payment which occurred first would be Spend Money with the Account being Supplier Credits - Supplier name. The Purchase Invoice would have the Account being “Licences”. This Purchase Invoice would be automatically paid by the Supplier Credits - Leaving a balance of -3 with the Supplier which matches your comment " so I have £3 credit with the company"

Then invoice was for £97, you paid them £100 and your supplier has therefore recognizing £3 credit? If that’s the case, Manager will automatically put £3 credit to Supplier credits account when you overpay invoice.

I think that @Brucanna is correct if I have understood what he saying. What I need to do is do a spend transaction for £100 and allocate that to the supplier Credits Account. Then I do my invoice for the £97 and I would have a credit balance of £3. All I had done was created the invoice for £97 and didn’t know where to put the £3 expense to reflect that I have actually spent £100 even though the invoice was for £97. So I will delete the payment for £97 on the invoice and make a payment of £100 through spend money and supplier credit. Now I understand the procedure.

Yeah that’s right. It actually doesn’t matter whether you debit Supplier credits or Accounts payable. If you debit supplier credits, then £97 will be automatically allocated against the invoice leaving £3 in supplier credits.

If you debit Accounts payable with £100, then overpayment of £3 will be automatically transferred to supplier credits.

Either way, result will be the same.

Generally, it’s helpful to process the transactions in the order which they occurred.

Yeah, in this case since payment was made before the invoice, the payment should be allocated to Supplier credits which is what it really was.

The problem was I that I was focusing on paying the invoice to the amount and then trying to work out where to fit the balance! AS you say precess the transactions in the order in which they occur. :slight_smile: