S.RAVINDRA

• Jan 6th, 2006

 

Excess payment to supplier is treated as Advance paid to supplier.  This will show as debit balance in supplier account.

Supplier can send the payment by way of cheque / demand draft without adjusting in his subsequent bills.

suryaprakash B

• Jun 1st, 2006

 

The following steps to be taken.

1. We have ask for the repyament of excess money

2 If he do not make repayment we can place some other order to compensate the same

Santosh .S

• Feb 22nd, 2007

 

with out adj to inovice , excess payment can be taken as " pre payments" in or.app as a  the status "temp" or "permenant"

steps

just like the producers of enter of invoice but only select the type as "pre payments"

ch.sambhasiva

• Jun 3rd, 2007

 

In oracle apps this procedure called as Refund. So, in this process supplier will send adujusting amont to customer. It is called as Refund, Maximum this amount sent as cheque or EFT.

preetamdelhi

 Profile Answers by preetamdelhi 

• Jun 20th, 2007

 

As per my understanding, we should ask for a credit note to the Vendor.

Suppose the vendor has raised the invoice for US$ 200.00 i/o US$ 150.00. Now if vendor send us the Credit note of US$ 50.00 then we can adjust the same against the invoice in Oracle.

Kamala kannan

 Profile Answers by Kamala kannan 

• Jul 23rd, 2008

 

When we made excess payment to supplier this will show as debit balance in supplier account. In this circumstance we can ask supplier to issue a credit note, once we entered the credit note in the same supplier account the debit balance will get adjusted.

Or We can adjust the excess payment in the subsequent order, which will receive from the same supplier.

Kamal

mumbai18

 Profile Answers by mumbai18 

• Apr 14th, 2009

 

We can ask him to give a credit note otherwise adjust the amount with other payment to the concerned vendor.

chinnaguntupalli

 Profile Answers by chinnaguntupalli 

• Nov 6th, 2009

 

Excess payment can be made in two ways:

1) Invoice posting done twice and payment made in Twice.  In this case, we can ask vendor to return the funds back to our account, on receipt, we can post the entry as Bank account Dr.
Expense Account Cr.
Vendor Account Dr.
Vendor Account Cr.

The reason for showing a Debit and Credit in Vendor account is due to have visibility in vendor account that, the excess payment been returned.

Or, We can ask supplier to raise a credit note for the amount paid in excess or upon receipt from supplier AP team can raise a credit note by using the same expense details which were booked twice, which can be off set against future invoices.
 
2. AP team recorded only one invoice, but due to technical issue or invoice paid through manual payment but not recorded in Subledger and issued another payment through Bulk Payment run.

In this case, in Sub Ledger and General Ledger we will be having only entry, however as per bank, we paid the invoice in twice.  for this also either we can request vendor to return the funds and entry should be posted as below

Cash Account Dr.
Bank Account

As there is no duplicate entry in Sub Ledger, This we need not to show agianst Vendor account as stated earlier.

When supplier requsted to adjust the excess payment made, entry should be posted as

Vendor Account Dr.
Bank Account.

so that, it creates debit balance in supplier account and which can be off set against future invoice.

Cody2727

 Profile Answers by Cody2727 

• May 8th, 2011

 

You would utilize a credit.  The supplier would issue a credit memo at our request and an adjustment would be made, if possible, on the next invoice payment to that supplier.

vs

• Apr 30th, 2015

 

vendor paid excess; so we refunded him back; how to adjust this in books

Joginder Singh

• Oct 7th, 2016

 

One way to do this check with vendor if they can give us refund and provide a credit memo. If the supplier agrees for refund and gives credit memo. AP team has to process a credit against expense code and apply a manual payment by selecting payment type as refund. This will balance with the refund in bank and AP books will be aligned.
Second way is to credit memo and adjust it with the future invoices.