Owner Operator Book keeping for idiots

Ontario Outlaw

Hozer Witta Hood
I’m really struggling to reconcile one accounts payable right now.

They’re telling me I need to call in and authorize credits to be placed against the amount owing.

I’ve talked to them about it, my bookkeeper and a couple accountants. It makes no sense how they do it.

Say in March and April I bought $1600 worth of parts. Then in May I returned $1400 worth of parts. Common sense says I owe $200.

They say I owe $1600, then in the next breath say but we see you have $1400 in credits, do you want to apply those to your accounts receivables? :confused-96:

Well, yeah. That’s the whole point in having a credit. Unless I mail you a cheque for $1600 so you can mail me a cheque for $1400? :coocoo:
 

Ontario Outlaw

Hozer Witta Hood
I’m really struggling to reconcile one accounts payable right now.

They’re telling me I need to call in and authorize credits to be placed against the amount owing.

I’ve talked to them about it, my bookkeeper and a couple accountants. It makes no sense how they do it.

Say in March and April I bought $1600 worth of parts. Then in May I returned $1400 worth of parts. Common sense says I owe $200.

They say I owe $1600, then in the next breath say but we see you have $1400 in credits, do you want to apply those to your accounts receivables? :confused-96:

Well, yeah. That’s the whole point in having a credit. Unless I mail you a cheque for $1600 so you can mail me a cheque for $1400? :coocoo:
So, they said they don’t apply credits in the off chance that someone pays money towards the same invoice at the same time.

So they’re taking my payment on my account, and paying off individual invoices

Ok. Got it.

So now we have it that any credits just go towards the oldest invoice and are automatically applied.

So I still don’t really understand why they’re overcomicating it. I get it from their end they need to show the invoices are paid.

Say I have a balance of $1153.98. owing. Cut them a cheque for $1000. I really don’t care where or what they do with my money at this point. I now owe $153.98.

They did say if I kept things more current, it would be easier. If I buy something in May, return it in May, receive the May statement and pay it in full on June 1, yes I can see that’s better. It’s not a perfect world though

So I don’t know. I’ve got it figured out somewhat but it’s still annoying
 
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