Bad-debt from supplier

[jram]

Hi all,

How do we show the refund from supplier?

Ex:- We have paid the prepayment of $1000 to supplier and we got the invoice for the $950.

Q1). How do we adjust the remaining $50 in case if we dont get any invoice from the supplier in the future?

Q2). If the supplier defalts the payment ($50) and we want to show it as bad debt. How do we show it in the payables?

Give me the solution in 11.5.10.2.


Regards,
Jram.

[oteixeira]

Hello.

I suppose you can solve it this way:

Q1). How do we adjust the remaining $50 in case if we dont get any invoice from the supplier in the future?

Create a standard invoice for the supplier using a dummy account in the distribution.
DR Dummy $50
CR Liability $50

Apply the remaining of the prepayment
DR Liability $50
CR Prepayment $50

Q2). If the supplier defalts the payment ($50) and we want to show it as bad debt. How do we show it in the payables?

You cannot show in AP but in AR. Create the supplier as customer and create a transaction to show the amount:

DR Receivables $50
CR Dummy $50

Hope this helps.
Octavio