CREDITING A CLIENTS ACCOUNT

[Fay]

Hi all,

I need to credit a clients account with a large amount. Basically a deal was made, there were some damages to one of their staff members vehicle whilst in our care. They asked if they had it fixed if we would just credit the amount towards their account. We agreed. 7 months later here I am trying to sort out large arrear amounts and balances brought forward and they have informed me this credit was never done on their account. Now I KNOW this does not entail a credit note !! What do I do ??? HELP PLEASE !!!

Many thanks

Fay

[IanF]

Cr Clients Debtor account
Dr Insurance claim (expense account)

But there are a lot of other things like VAT, did your company claim from insurance, have you got invoices to back up the expense, is there an excess payable.

[Fay]

No excess paid from our part, the client just wanted us to pay for the damages. So someone thought the easiest way was to credit their account with the amount. I would have done it differently, but anyway .......

[prettypegagirl]

I would ask for an invoice for the damages - there must be proof for the amount of credit.
I would then create a supplier account and record the invoice, then just transfer the balance to the client's account, thus supplier account zero again