Handling supplier account paid by fixed direct debit

Anonymous · ‎April 17, 2019

When suppliers take monthly payments by fixed direct debits, sometimes these payments will overpay the bills. There does not appear to be a facility in Quickbooks to overpay suppliers bills.

I have tried two ways to resolve this, but neither of them have worked. Firstly, when the payments come through from my banking feed, I treated them as expenditures against the supplier account. This allowed the bank account to be reconciled correctly, and the expenditures show on the supplier account, but they are not applied to the bills and the open balance of the bills remains and appears still unpaid.

The second way, suggested by the QB support technician, was to apply the matched part of the payment to the bill, and treat the overpayment as a supplier credit. So for example, if the monthly payment is £200 and the bill is £150, I would apply £150 of the payment to the bill, and leave the £50 as a supplier credit which I could apply to the next bill. The problem with this is that the supplier credit is not linked back to the bank account, so there is then a £50 discrepancy in the bank account which prevents it from being reconciled.

I'd appreciate advice as to how to resolve this situation, as currently I'm unable to reconcile my bank account.

Anonymous · ‎April 18, 2019

Great - thanks very much Talial and Emma - that worked!

I've now been able to reconcile my bank account, so my world is now a happier place.

View solution in original post

EmmaM · ‎April 17, 2019

Hello

Thanks for reaching out. So the first option is the best as you mentioned creating an expense to creditors and selecting that supplier(which you can then use to pay part of the next bill)it would then be a case of going to make payment on that bill in the supplier and then selecting that expense to pay the part of the bill($50 in this example)

Then in the banking page with the payment of 200 pound in this example if you click on the line and go to find match. You should find the bill for £150 which you can tick as well as the payment of £50 which you have then applied to the next bill. If you do not have a new bill yet you can pay the £150.00 bill manually in the suppler and create the expense to the supplier (selecting creditors in the account detail) and then use when you next have a bill and it will still show in total £200 deducted from the bank you would just have to exclude from the banking section as it would not find a match

Any questions let us know

Emma

Anonymous · ‎April 17, 2019

Emma

Thanks so much for coming back to me.

I'd be grateful if you could clarify - you suggest that I should firstly create an expense crediting the supplier - is this for the overpaid amount (i.e. 50 in this example)?

You then suggest that I make payment on the supplier's bill and select the expense I've just created to pay the part of the bill. How do I find that expense to select it? It doesn't seem to be accessible from the Bill Payment window - I can see all the bills on the supplier account in the right hand pane, but not the expenses.

Thanks very much

Mapdoctor

TaliaI · ‎April 17, 2019

Hello,

Yes, the expense would be for the overpaid amount. You will need to make sure the category selected on the expense is Creditors. Once you have done this, you will then need to find the specific bill and select Make Payment - rather than going through Pay Bills. At the bottom of the screen, the expense should then show.

Thanks,

Talia

Anonymous · ‎April 18, 2019

Great - thanks very much Talial and Emma - that worked!

I've now been able to reconcile my bank account, so my world is now a happier place.

TaliaI · ‎April 18, 2019

That's great, you're welcome!

Please let us know if you have any further questions.

Thanks,

Talia

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Handling supplier account paid by fixed direct debit