Re: Refunding money to a customer

[Stroller <..hidden..>]

Thanks for your reply, John.

I feared no-one was going to answer!

On 21 Mar 2008, at 00:57, John Locke wrote:
> > ...
> > A while back, when working in a customer's restaurant on his laptop,
> > I spilled a drink across the keyboard. My insurance company paid
> > promptly, and sent a cheque directly to the customer who replaced the
> > machine.
> >
> > I have a £100 excess on my insurance, however, and would like to set
> > this against invoices (long) owed by the customer.
> Cash->Receipt
>
> As long as there's an open invoice for the customer, you can apply any
> payment amount to that invoice. If it's less than an invoice, put the
> amount paid in the invoice line, and update -- the total should update
> appropriately. If it's an overpayment, check the invoices and update,
> and then put the total received in total box, and post. LSMB will put
> the extra payment in an AR transaction with a negative amount.
>
> The next time you go to Cash -> Receipt, you'll see this  
> overpayment and
> can apply it to a new invoice.
>
> At least, that's how we do it here.

My concern with this method is that the £100 would appear to show as  
income.

IE: the taxman sees an invoice for £500, payments of £500, and so  
taxes me correspondingly. But I haven't received £500!

I want the taxman to tax me only on £400, and to see paperwork to  
explain the £100 discrepancy between the income and the £500 invoice.

Stroller.

(I hope this is clear - it's a little late here)