Create an internal Invoice

USA Discussion in 'General Accountancy Discussion' started by roxanna9, Jul 12, 2018.

  1. roxanna9

    roxanna9

    Joined:
    Jul 12, 2018
    Messages:
    9
    Likes Received:
    0
    I was told to create an internal invoice to wash out a customer's credit. By creating an invoice a journal entry is also created (debit: A/R and credit: Sales) I know I must change the sales account for another account. What account can be? and this one what type of account? expense account? Thank you
     
    roxanna9, Jul 12, 2018
    #1
    1. Advertisements

  2. roxanna9

    Steve-LevelUp VIP Member

    Joined:
    Jul 18, 2016
    Messages:
    289
    Likes Received:
    40
    You can look at what created the customers credit and reverse that entry. Did the customer overpay (no refund)? Was a credit booked that you are now reversing? Knowing how the credit got there is a start.
     
    Steve-LevelUp, Jul 12, 2018
    #2
    1. Advertisements

  3. roxanna9

    Victor Shah

    Joined:
    May 25, 2018
    Messages:
    24
    Likes Received:
    2
    Location:
    Salem, NH
    Yes. I agree with Steve. You need to look at the route of the issue. Look at the balance of customer credit balance and investigate on how that was created and whatever is the account debited when the credit was created, same account can be debited here.
     
    Victor Shah, Jul 13, 2018
    #3
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.