Payment received in error

Hello Jane

You mentioned in your post  you received a payment into Company 1's bank account that should have been paid to company 1, do you mean that should have been paid to company 2?

Was the receive payment on an invoice in company 1 or was it done as a bank deposit?

We can certainly go through the best way to record this we just need a little bit more information on this.

Thanks

Emma

Hi Emma,

Thanks for your help.

Yes exactly that…. it should have been paid to company 2.

Was the receive payment on an invoice in company 1 or was it done as a bank deposit

Not sure I understand the question? - The invoice was raised by company 2.

Does this help move us forward?

Thanks

Jane

Hi JLR03

You could record the money being received by company 1 in error as a bank deposit. In the add funds to this deposit section, add/create the name of the customer that the payment should have been received from in company 2 in the received from column, in the account column select/enter the debtor/accounts receivable account enter the amount, in the amounts are box select No VAT, ensure the date is the date it was received by company 1 and in the account section at the top of the screen you have selected the bank account the money was received to,save and close.

Then when you are sending the money back to company 1 create an expense. In the payee box select the customer you created above, the payment account is the bank account you paid the money from/back to company 2, enter the date that the amount was debited from your account in the payment date box, in the category column select/enter the debtors/accounts receivable account enter the amount, in the amounts are section enter No VAT, save and close.

Hi John

Thanks for your reply. 

I will attempt this and update the result once done.

@JLR03

Thank you! We look forward to your response.