Question

If i have overpayments from customers relating to 3 years in the past,do i need to "create" inv/debit notes to balance the customer account and bring the revenue into the income statement?

Answer 1

If it is an over-payments, that has to be refunded. But if this customer is still dealing with you, then you can set off the over-payment against the receivable on a current invoice.

Comments

one point is : just recognize any payable, if u think you have obligation to pay in the future. if not, no need to recognize. u could write them off.