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Junior Member
Group: Forum Members
Last Login: 6/06/2007 7:56:16 PM
Posts: 0,
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My example/question concerns PBG.
Application price was $2.60. Final issue price was $2.50. We applied and paid for 3,000 at $2.60 but were scaled back to 2,700. A refund cheque turned up in due course for 300 x $2.60 plus 2,700 x $0.10.
I entered the asset transaction as 3,000 @ $2.60 then tried to apply the refund. Oops.
Can anyone suggest the steps or GJ entries required to (a) reduce the quantity and (b) reduce the purchase price AND (c) reconcile with bank statement entries for the cheque written and refund received, to arrive at a cost base of $2.50 on a quantity of 2,700?
Thanks,
Elaine
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MySF Administrator
Group: Administrators
Last Login: 16/05/2012 7:43:33 PM
Posts: 213,
Visits: 978
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There are a couple of ways to proceed. The most straight forward is to use the Financial Asset Editor under Utilities. This can only be used if no additional transactions have been posted against the Asset. It can only be used once - So we would suggest you backup before you do the edit.
Using the Editor change both the unit cost and the number of units to reflect the 2700 @ 2.50. This reverses the original transaction and generates the correct entry to the asset quantity and balance.
Your problem then is that the cheque you originally issued is no longer in the bank statement - it shows an amount which is less by the amount of the refund. To get this 100% correct you would go to the Transaction Reporter and reverse the new entry generated by the Asset editor and then put through a manual Journal (or Cash Payment) against the asset account and the bank for the full amount of the original cheque. You would then post the Refund cheque either as a Cash Receipt or General Journal against the Asset account and Bank Account.
Regards
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