Payment Received - Record Transaction

UK Discussion in 'General Accountancy Discussion' started by davidlee, Jan 12, 2019.

  1. davidlee

    davidlee

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    Hi,

    I need some help on the best way to record the following transaction:

    We make direct debit payments to a company for life insurance, £100 a month for a manager. He has now left the Company and didn't manage to cancel his policy in time, so he has now refunded the £100 to use via bank transfer. I wanted to know how I would now record this transaction please? Do I have to create a credit note against the supplier, then post the payment against this? Or is it enough just to balance the payments themselves?

    I use Sage50.

    Thanks!
     
    davidlee, Jan 12, 2019
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  2. davidlee

    kirby VIP Member

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    Do not offset the payments against themselves. Record an entry showing the payment to the insurance company and an entry for the refund to you as dr cash and cr insurance expense.
     
    kirby, Jan 14, 2019 at 4:47 AM
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    davidlee likes this.
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  3. davidlee

    davidlee

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    Thank you!
     
    davidlee, Jan 14, 2019 at 4:23 PM
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