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
Replies (2)
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You recognise the overpayment by correcting the error in writing it off the the P&L when it was made.