I have a procedural question that doesn't concern any Simply Accounting method. Please advise if there is a more appropriate forum for posting.
I entered a payable and printed a cheque for an item whose cost is actually less than the cheque's amount. The difference is of no concern, but it got me thinking about the correction for such an error. For simplicity's sake we'll say the cheque has already been cashed by the vendor.
I was able to print a cheque for more than the invoice amount because I entered the purchase before receiving the invoice. The cheque in question was made to a trucking company for a delivery charge whose amount was disclosed in a phone conversation minutes before delivery. It was C.O.D., the purchase was entered by me, and the cheque printed minutes later by the company's owner - without careful examinination of the physical invoice now in hand.
My instinct tells me to reverse the original payable, re-enter the vendor purchase and charge the difference off to a COGS adjustment write-off account. Does that sound right?
Thanks in advance.
N.
