What is a suspense refund?
A suspense refund number may be automatically generated to track the refund in OIPA if the activity was configured with that functionality. A disbursement activity, when processed, completes the process and returns the money to the client.
What does policy suspense mean?
Suspense Accounts A suspense account is an account that is used to temporarily store money until a decision is made about where the money will be allocated. It identifies where the money came from and allows the money to be used as payment to one or more policies. Suspense accounts are set-up in the Rules Palette.
What is suspense on my bank statement?
Suspense accounts contain entries where there are uncertainties or discrepancies. For example, if an individual makes a deposit but accidentally writes down an account number incorrectly, that money will be housed in a suspense account until the error is corrected.
What is a suspense account when is it opened?
A suspense account is opened whenever you receive a payment and you cannot identify which invoice the customer wants paid or which customer made the payment. If your customer sent in a partial payment, contact the customer to find out which items or invoices the payment covers.
How is the balance of suspense account treated?
In case a suspense a/c is not closed at the end of an accounting period, the balance in suspense account is shown on the asset side of a balance sheet if it is a “Debit balance”. In case of a “Credit balance”, it is shown on the liability side of a balance sheet.
How do you calculate suspense account?
Open a suspense account. Credit $50 to the suspense account. Debit the cash account for the same amount. When you receive the full payment from the customer, debit $50 to the suspense account….Example #1: Receiving a partial payment.
What is the purpose of a suspense account?
A suspense account is an account in the general ledger that is used to temporarily store transactions that require further analysis before a permanent assignment in the records can be made. The use of a suspense account allows time to research the nature of a transaction while still recording it on the company’s books.
What errors require a suspense account?
There are a few errors that are shown or revealed by the Trial Balance, which requires a Suspense Account creation:
- Part omission (e.g. only one side of the transaction is recorded)
- Part original entry (e.g. one account is debited for $78 and other is credit for $87)
- Recording twice either in debit or credit.
How do you clear a suspense account?
To be cleared out, the account must have a zero balance. Move suspense account entries into their designated accounts to make the suspense balance zero. Eventually, you allocate entries in the suspense account to a permanent account. There is no standard amount of time for clearing out a suspense account.
When suspense account is opened?
What do you mean by suspense account when it is opened?
A suspense account is a temporary resting place for an entry that will end up somewhere else once its final destination is determined. There are two reasons why a suspense account could be opened: A bookkeeper is unsure where to post an item and enters it to a suspense account pending instructions.
What is suspense amount in insurance?
A suspense premium is one which is suspended because the insurer is unable to process and recognise it as premium, probably due to inadequate information. For instance, a premium payment received may not be equal to an exact multiple of the modal premium of the policy, or the policy may have lapsed.