Share this content

Bank reconciliation in Excel help re Credit notes

Credit notes dated and entered in the current year, but used against invoices from the previous year

Didn't find your answer?

Hi there,

I am reconciling a set of books which are recorded in Excel, and have a query re 3 Credit notes which are dated and therefore entered in the current year, but have been offset against payments made for invoices outstanding from the previous year. I have begun with the last reconciled balance, at the end of the previous year, and to it added all of the current years credits/debits, and the bankings from the previous year, ie these payments for creditors, but am unsure how to treat these credit notes in the reconcilliation process. Can anyone please advise me? Thank you in advance! 

Replies (2)

Please login or register to join the discussion.

Routemaster image
By tom123
18th Jan 2017 12:09

I am not sure how a bank reconciliation is affected by documents included on the purchase ledger - surely you are just looking for differences between your cash book and the bank statement?

With regards to the purchase ledger - at the year end you will have had what appear to be 'underpayments' thus showing partial balances outstanding to the supplier.

These are then cleared by postings of credit notes received in the new year.

Unless the amounts are significant, I would just leave things like that.

Thanks (0)
By petersaxton
18th Jan 2017 16:47

As Tom says, you are confusing things if you think credit notes have any bearing on a bank reconciliation. I suggest you get an accountant to do this work for you.

Thanks (0)
Share this content