How to make a Bank Transfer Postings

The bank account you are moving money from, is decreased by the full amount (a credit posting). The bank account you are moving money to, is increased by the full amount (a debit posting). The Audit Trail is updated with two transactions. A Journal Credit (JC) taking the money out of one bank and a Journal Debit (JD) putting the money into the other. The Postings Made On Cheque Returns Cancelled Sales Receipts The reference of the receipt that has been cancelled is changed to CANCEL, and the details field is changed to show Cancelled Cheque. A new sales invoice transaction is posted to the customer’s account for the amount that was cancelled. It will have a transaction date taken from the system date, the same reference as the cancelled receipt and a description of Cancelled Cheque. It will have a tax code T9 (non-VAT item) and the nominal account code will be that of the mispostings control account (default 9999). The amount for the original receipt is cancelled in the relevant bank account, so the amount in the bank is reduced. The details will be Cancel’d Chq and the tax code T9. The mispostings account will be updated with the amount for the cancelled receipt and the amount for the newly generated sales invoice, resulting in an account balance of zero. The turnover for the customer’s account will not be increased as a result of the new invoice posting, nor will the sales nominal account or sales VAT control accounts in the nominal ledger be affected. Cancelled receipts will not be included in the total amount paid this period, which is displayed on the customer account transaction history. Cancelled Purchase Payments The reference of the payment that has been cancelled is changed to CANCEL, and the details field is changed to show Cancelled Cheque. A new purchase invoice transaction is posted to the supplier’s account for the amount of the cancelled payment. It will have a transaction date taken from the system date, the same reference as the cancelled payment and a description of Cancelled Cheque. It will have a tax code T9 (non-VAT item) and the nominal account code will be that of the mispostings control account (default 9999). The amount for the original payment is cancelled in the relevant bank account, so the amount in the bank is reduced. The details will be Cancel’d Chq and the tax code T9. The mispostings account will be updated with the amount for the cancelled payment and the amount for the newly generated invoice, resulting in an account balance of zero. The turnover for the supplier’s account will not be increased as a result of the new invoice posting, nor will the purchase nominal account or purchase VAT control accounts in the nominal ledger be affected. Cancelled payments will not be included in the total amount paid this period, which is displayed on the supplier account transaction history. The Postings Made On Invoice Refunds Sales Refunds A sales credit note is posted to the customer’s account with the same reference as the refunded invoice. The details field contains Sales Refund and the tax and sales nominal account codes will be the same as the original invoice. A dummy sales invoice is posted to the customer’s account with the same reference as the refunded invoice. The details field contains Sales Refund, the tax code will be T9 and the nominal code will be that of the mispostings control account. The invoice is allocated in full to the credit note described above. The account’s turnover is reduced by the net amount of the new credit note posting, excluding any VAT. The account’s balance is not affected, nor is the amount paid this period total. The nominal account for sales, as used for the refunded invoice, is reduced by the net amount of the refund, excluding any VAT (a debit posting). If VAT was included in the sale, the amount of VAT you need to pay on sales, as shown in the Sales VAT control account, is reduced by the VAT amount of the refunded invoice (a debit posting). The money in the bank control account is increased with the total value of the new invoice, and reduced by the total amount of the refund, resulting in a zero effect. The total amount owed to you by your customers, as show in the debtors control account balance in the nominal ledger, remains unaffected. Purchase Refunds A credit note is posted to the supplier’s account with the same reference as the refunded invoice. The details field contains Purchase Refund and the tax and purchase nominal account codes will be the same as the original invoice. A dummy invoice is posted to the supplier’s account with the same reference as the refunded invoice. The details field contains Purchase Refund, the tax code will be T9 and the nominal code will be that of the mispostings control account. The invoice is allocated in full to the credit note described above. The account’s turnover is reduced by the net amount of the new credit note posting, excluding any VAT. The account’s balance is not affected, nor is the amount paid this period total. The nominal account for purchases, as used for the refunded invoice, is reduced by the net amount of the refund, excluding any VAT (a credit posting). The amount of money in the bank control account chosen is increased by the gross amount of the refunded invoice, including any VAT (a debit posting). The balance of the mispostings account is reduced by the value of the new invoice and increased by the total amount of the refund resulting in a zero effect. The total amount you owe to your suppliers, as shown in the creditors control account balance in the nominal ledger, remains unaffected.