A parent may render a service to the school and ask that the value be credited against their school fee account instead of being paid out to them. This article explains how to process that request, and covers both the straightforward case and the case where the parent has already been captured as a creditor.

Finances > Debtors > Journals

Which method applies to your situation?

There are two scenarios, and they are processed differently. Establish which one you are in before you start.

• No creditor invoice exists. The parent rendered the service and has not been captured as a creditor. Use Method 1, a single debtor journal.

• A creditor credit already exists. The parent has been captured as a creditor and there is a credit sitting on that account. Use Method 2, a two-step contra through the Suspense Account.

Method 1 – Credit the fee account directly

1. Confirm that the learner has no exemption.

2. Go to Finances > Debtors > Journals and process a debtor journal.

3. Select the General Ledger account you would have used to pay the parent for the service. Do not select the bank account, because no money is leaving the school.

4. Select Debited (credit debtor – decrease balance).

5. Enter the amount and a clear description, then verify every field before clicking Continue.

The expense is recognised against the correct general ledger account, and the learner's fee balance reduces by the same amount.

Method 2 – Offset an existing creditor credit

Where the parent already has a credit on their creditor account, the amount must be moved across to the learner's fee account as a contra transaction. Because the Debtor and Creditor accounts are both control accounts, d6 does not allow a direct General Ledger journal between them. The transaction is therefore routed through the Suspense Account in two steps.

Step 1 – Clear the creditor credit

1. Go to Finances > Creditors > Journals and create an adjustment against the relevant creditor.

2. Select the Suspense Account as the General Ledger account.

3. Enter the same amount as the creditor credit being cleared.

4. Describe the journal clearly, for example Contra offset to learner fee account.

5. Note the transaction date, as you will need to use the identical date in Step 2.

Once posted, the creditor credit is cleared and the amount sits in the Suspense Account.

Step 2 – Apply the amount to the learner's school fees

1. Go to Finances > Debtors > Journals and process a Debtor Journal (Correction) using School Debtors to Ledger Account/Project.

2. Select the Suspense Account as the General Ledger account.

3. Enter the exact same amount and transaction date used for the creditor journal.

4. Allocate the credit to the relevant outstanding school fee items on the learner's family account.

Why route the transaction through the Suspense Account?

The Debtor and Creditor accounts are control accounts. They exist to keep their sub-ledgers reconciled to the General Ledger, so d6 does not permit a direct journal between them.

Using the Suspense Account as a temporary bridge means each sub-ledger is updated through its own journal, and both remain correctly aligned with the General Ledger. The Suspense Account holds the value only between the two steps, and should be empty again once both are posted.

Frequently asked questions

Why must I check for an exemption first?

Confirm that the learner has no exemption before processing the journal. If an exemption is already in place, check the fee position before crediting the account further.

Which General Ledger account should I select on the debtor journal?

Select the account you would have used to pay the parent for the service. Do not select the bank account, because no money is actually leaving the school. The expense still needs to be recognised against the correct account.

What does "Debited (credit debtor – decrease balance)" do?

It credits the debtor, which reduces what the family owes. The general ledger account you selected is debited by the same amount.

Why can I not journal directly between the Debtor and Creditor accounts?

Both are control accounts, and d6 does not allow a direct General Ledger journal between them. Routing the transaction through the Suspense Account keeps the creditor and debtor sub-ledgers correctly aligned with the General Ledger.

The Suspense Account is not back at R0.00. What went wrong?

The two journals do not match. Check that the creditor journal and the debtor journal use the exact same amount and the exact same transaction date, and that both selected the Suspense Account.

Can I edit or delete a journal after posting it?

No. Journals are posted automatically when you click Continue and cannot be edited or deleted. To correct one, process a reversal. Always verify the date, amount, creditor or debtor account and allocations before posting.