Re: [SL] Refund Checks

[Dr E. L. <el...@li...>]

As I said, some are slow. And cheap :-)-O

By the way, this Credit Note business of yours, how would it work if you
paid VAT? Ie, where you *have* to pay it *and* later claim it back? I
operate a domain Registrar and the Registry it exclusively works with.
So I could just do what you are doing, but would end up in jail for
violating the VAT act. Irritating, but I just pay the Receiver wait 2
months and get it back :-)-O.

Of course I hacked a little perl script which fills in the VAT forms,
and generates a list of transactions so if they come and inspect they
have it easier :-)-O. I'd *love* to email the form, and I probably could
(the taxation officers there are actually helpful), but since the
Receiver can not be paid by EFT, we have to drop a check anyway, so I
drop the form as well.

el

on 11/26/06 9:13 PM Tony Fraser said the following:
> On Sun, 2006-11-26 at 12:26 -0500, Mark Bucciarelli wrote:
>> On Sat, Nov 25, 2006 at 07:47:09PM -0800, Dave Snell wrote:
>>> So just so I'm clear, good Doctor, I should create a
>>> bogus vendor record and accompanying AP transaction so
>>> that I can issue my refund check.  Then throughout the
>>> year - as I continue to statement my customer - I
>>> should just wink and say "just ignore this
>>> transaction" we'll take care of it at the end of the
>>> year.  And then come the end of the year I should do
>>> what again?  Sorry if I'm being slow, I guess I just
>>> expect an accounting package to handle some of the
>>> basic accounting transactions for me.
>>>
>> Can't you create a holding account and enter a G/L transaction so
>> the customer account is correct?  Then use A/P against this same
>> holding account to generate the check?  Externally all is
>> copacetic and you just need to reconcile that holding account at
>> year end.
> 
> Um, just to fine tune this a bit. I actually do something similar, I
> have a Customer who uses my services quite a bit and I buy quite a lot
> of goods from them. A refund cheque is similar. Instead of sending each
> other large cheques that don't really mean anything, once a month or so
> we sit down and match up our invoices and issue each other credit notes
> and whoever still has a balance pays the balance.
> 
> What I have is a holding account I use for the task that has the links
> AR_paid,AR_amount,AP_paid,AP_amount. Mine is an Asset account, you could
> make yours a liability account. The refund cheque would be 2
> transactions:
> 
> A negative AR transaction (Credit Note) that debits the holding account.
> Which in your case would be used to "pay" the invoice that is being
> returned using the Cash->Reciept screen, just tick the 2 invoices to pay
> them in full and click update. Both invoices should get "paid" but the
> total payment amount should be $0.00
> 
> Now you can make a positive AP transaction (using as you say a bogus
> vendor record) that credits the holding account. now you can pay the AP
> transaction with a cheque from your chequing account.
> 
> By using a negative AR transaction the customer will see the credit on
> there next statement and the positive AP transaction will allow you to
> print the refund cheque properly.
> 

-- 
Dr. Eberhard W. Lisse  \        / Obstetrician & Gynaecologist (Saar)
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