Writeoff Excess Paid To Vendor

What JV we Can Pass For, Excess Amount Paid To Supplier, Now it Is Not Refundable what JV we Can Pass.
Replies (4)
Quick Summary
This discussion addresses how to handle an overpayment made to a supplier that is now non-refundable. The proposed solution involves adjusting the creditor account and writing off the excess payment. This write-off reduces both liabilities and the creditor balance, reflecting the actual financial position after the erroneous payment.

Purchases a/c

To Creditor a/c

and 

Creditor a/c

To Bnk a/c

this is what happened. Now you realised you have over payed and need to report it, so adjust the Creditor amount in your software

By Creditor a/c 100

By Excess payment 100

To Bank a/c 200

or simply, 

by excess payment 100

To Creditor 100

 

 

Thanks For Solution
NO EXACT SOLUTION.

Hi Mr. Sabyasachi, long time no see, I think leaving the invoicing system, reducing the Creditor by 100 and since bank already paid 200, writing off 100 will reduce the liabilities (retained earnings) by 100 and Creditor by 100 while assets already reduced by 200.

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