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Thread: Incorrect Cash Book posting

  1. #1
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    Incorrect Cash Book posting

    Please help! Back onto Pastel after 18 years and having never processed discounts, I need step-by-step instructions on how to correct my incorrect posting.
    I captured the receipt in the Cash Book but then on the second line, I captured the discount. Only after updating did I realise my error - obviously Cash Book will be out by the discount amount. I want to reverse the discount and put through a customer journal for the discount but am totally befuddled on the correct steps to take. Not sure which are the contra accounts. Seriously need help - I don't want the books looking a mess with credits and debits all over and confusing customers with their statements.

    TIA
    Anne

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    Diamond Member Neville Bailey's Avatar
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    Hi Anne,

    First step is to reverse the mistake: Recapture the discount line items, exactly as you originally did, using the same references, etc, but with a minus sign in front of the amount.

    Second step is to capture the discounts correctly: Process a cashbook receipts journal, and capture the discount amount for each customer in the Discount column, and leave the Bank column blank.

    In future, you will capture the net receipt (after discount) in the Bank column and, on the very next line, capture the discount amount in the Discount column, but with a difference reference to the net receipt line item above. The reason for the next line and different reference is so that the statement will reflect the discount amounts separately from the net receipt amounts, and not add them together on the same line.
    Neville Bailey - Sage Pastel Accounting Consultant
    www.accountingsoftwaresupport.co.za
    neville@accountingsoftwaresupport.co.za
    IronTree Online Solutions

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    AnnaC (03-Jul-18)

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