Hi All,
I need some guidance if possible on the following issue which I have been trying to tackle but just can't seem to fathom out :-
My clients' company made a payment to a supplier for which I had no outstanding invoices. On checking with my clients they advised that the payment in fact related to an old outstanding invoice. I have only recently taken over the books from another bookkeeper and after checking for the invoice in previous years accounts I found that it had in fact been entered correctly into the books in December 2007 and was in fact part paid ( note -the company's year end is 31st March). The bookkeeper from whom I took over was appointed to do the books in Sept 2008 at which time I understand they were in a bit of a mess, from what I can see she entered this part paid invoice under the suspense account when setting the accounts up on Sage. The invoice then appears to have remained outstanding until March 2010 when the previous bookkeeper in effect removed the invoice from the books (along with several other invoices for the same supplier) by entering a dummy purchase credit note on the system thus removing it from the suppliers account and the suspense account. This reduced this particular suppliers account balance to nil so I can only assume that the previous bookkeeper has decided that after investigation this invoice and several others did not need to be shown in the accounts as they had already gone through the books and been paid. However it now appears that the invoice still has a part outstanding balance and I'm not sure how to re-post it into the accounts. As it has already gone through the books and been correctly posted to the purchases nominal code in 2007 I've come to the conclusion it would now need to be posted to the suspense account, but from what I can see this would ultimately mean that the entry would just sit in the suspense account with nowhere I can journal it to in order to clear it out. Has anyone any suggestions as to how I might be able to re-enter this invoice back into the books and have no outstanding balance in the suspense account ( I use sage by the way)?
Also just to complicate matters the invoice was from a foreign suppier and was in Euros so if I re-enter the invoice into this years accounts would I use the current exchange rate or the one that applied when the invoice was originally entered in the books in 2007?
Apologies for the length of this post but I just wanted to paint the full picture. Any help would be much appreciated.
Many Thanks
Richard
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