Overpayment to a supplier

How to account for the overpayment

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An amount was paid to a supplier in March as believed to be due, and posted to cash and P&L expense (by someone else).  The supplier then sent in a separate bill and has said the March payment has been offset against it as the account was already clear before the March payment.

There is only £50 now owed according to the supplier.  How should we account for the “overpayment” please.  

Many thanks

 

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By johngroganjga
15th Jun 2018 04:51

You recognise the overpayment by correcting the error in writing it off the the P&L when it was made.

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By bernard michael
15th Jun 2018 09:40

This type of question is getting ridiculous, it isn't even level 1 book keeping

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