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clearing old balances

  • 58 posts
  • # 87478

Hi everyone,

My boss got behind with his business rates payments which resulted in the district council producing a newstatement including two balances from very overdue payments.

I now have these two old balances just sitting there - plus the new statement (we have a DD set up now thankfully) is there a simple way I can remove the old balances from the screen when I go into make a payment...?

I'm probably not wording this very well but I hope there is someone who can piece together what I need to do so that I only have the relevant statement 'live' - its becoming irritating looking at the Aged Creditors totals which show a very untrue 'Older' owing balance....

Thank you in advance
Jo'Anne 
Jocelyn
  • Member
  • 71 posts
  • # 87502

Did you post the new statement through the accounts as an 'expense?'  I assume you have as it shows on the debtors ledger.

 If you did this then the business rates have been included in the expenses twice.  Once with the original invoice and once included in the new new statement.

I would raise and post credit notes for the old balances using the same nominal codes as used for the new statement  and match the credit notes against the old balances.  This will clear the old balances from the debtors ledger.


I doesn't matter if the old outstanding balances were for a previous accounting year, you can't alter that as that has been and gone.  The total of the new statement less the credit raised will equal the correct amount for the current year.   


Hope I have understood the query correctly and this solves the problem.
  
  • 58 posts
  • # 87520

> Thank you very much, I will raise look into raising credit notes for the old balances....
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  • 58 posts
  • # 87548

Hello Jocelyn,

I have been going through this again and can see that an original rates was entered onto Sage and partly paid leaving a balance of £1558.00
Then another rates (invoice) was entered of £1954 
Neither of these were paid off, leaving a balance of £3512.00

Then a new updated rates invoice taking into account this balance of £3512.00 was received and entered onto the system.

So now the original balance of 3512.00 plus the one being dealt with by DD is being totalled.

The actual balance owing to the District Council is £1758.00 at present.  But Sage is telling us that we owe a total of £5270.00

Should I raise credit notes for the two old outstanding to cancel the old balances out?
CN for £1558.00
CN for £1954.00...


Jocelyn these invoices were entered onto the system before I joined the company...
"Did you post the new statement through the accounts as an 'expense?'  I assume you have as it shows on the debtors ledger"

Thank you
Jo'Anne 
Jocelyn
  • Member
  • 71 posts
  • # 87560

Hi Jo'Anne

'Should I raise credit notes for the two old outstanding to cancel the old balances out?
CN for £1558.00
CN for £1954.00...'


Yes.


Ignore the monetary value owed to the council for the moment as this is irrelevant.  You are interested in the 'expense' amount that has been posted to the accounts.

If you think about it, £1558 and £1954 were already included in the expenses  when the second invoice was received. This invoice included the outstanding £3512 as well as any new charges due.  When this invoice was posted the 'rates expense'   was over stated by £3512.  To get to the correct charge for the period, you do need to raise the credit notes for £1558 and £1954. This will also give the correct outstanding monetary value on the debtors ledger. 
  • 58 posts
  • # 87561

Smile I had just  logged into the forum when your reply came through - very timely

Thank you very much for your explanation.

Jo'Anne 
  • 58 posts
  • # 87562

Embarassed I am puzzled and embarrassed:
I have looked but cannot see how I am to raise these credit note for our supplier  I can only see Supplier refund & Supplier Write off/Refund....???
  • 58 posts
  • # 87563

Embarassed Now I'm very embarrassed....
I have of course seen the light and realised how easy it is to raise a cn .... in some respects I really am a newby at bookkeeping.... 
Jocelyn
  • Member
  • 71 posts
  • # 87564

Hi Jo Anne


What computer system are you using?  


Credit notes are usually 'near' invoices in the list of tasks.  If there isn't one, use an invoice but put the values in as negative (-). 


Don't forget to use the same nominal code as used on the second invoice.


   
Jocelyn
  • Member
  • 71 posts
  • # 87565

Don't worry we all do it.


Can't see it for looking!!!!


Let me know if it does as you want it to     
  • 58 posts
  • # 87566

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> Definitely one if those days :) It worked perfectly I use Safe 50 2012
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