How do I correct an incorrect drawdown amount?
This article lays out how to correct a drawdown amount when you've withdrawn too much or too little.
Quick answer
If you withdraw the wrong amount for a drawdown, do not top it up or take out the difference. Return the full incorrect amount, balance the two entries off, then withdraw the correct amount and reconcile it to the drawdown. Drawdown figures cannot be adjusted, so the bank entry must match the drawdown figure exactly.
Why a drawdown cannot just be edited
For a standard payment you can delete the payment group item and remake it. A drawdown is different. Its amount is built from your paid sales balances, so editing or deleting the item would upset those balances and stop you carrying out the drawdown.
This also means a separate payment for the difference (a top up, or a different amount on the next drawdown) will not work. The bank entries will still not match the drawdown figure when you reconcile.
How to correct it yourself
You need a special account to balance the entries off. This can be the transfers between accounts special account, or an "Account Fix" contractor (call it "Drawdown Fix" if you prefer). You can set up the contractor yourself. If you would rather use the special account and do not have it, let us know and we can add it.
- Pay the incorrect amount back in full from your business account to your client account. Return the whole amount, not just the difference.
- Once both bank entries show in Reconcile Statements (the original withdrawal and the return), link them both to the same special account or Account Fix contractor. They are equal and opposite, so they balance to nil.
- Withdraw the correct drawdown amount from your client account to your business account.
- Reconcile that new bank entry against your drawdown payment group item.
Example: your drawdown is £5,000 but you withdrew £4,700 by mistake. Do not withdraw another £300. Return the full £4,700, link both £4,700 entries to the same special account, then withdraw £5,000 and reconcile it to the drawdown. If you had withdrawn £5,300, you would return the full £5,300, not the £300 difference.
If you made up the difference on a later drawdown, the same applies to that one. Each withdrawal must match its own drawdown figure.
Common mistakes to avoid
- Returning only the difference. The full incorrect amount must go back.
- Changing the next drawdown to make up an earlier error.
- Linking the two balancing entries to different accounts. Both must go to the same one.
- Adjusting your client account balance to "make the accounts match". This hides the cause rather than fixing it and can lead to greater errors if left.
A wrong drawdown figure affects your paid sales balances: once a drawdown is carried out, that amount is taken off your paid sales, which in turn affects future drawdowns. This is one way a negative paid sales balance can appear.
If you would rather we do it
We can add manual entries that replicate the correction, so you do not need to make any real bank transfers. This is a professional service, charged at £100 per hour plus VAT. Let us know if you would like us to do this.
If you need our help either way, please send us the date and amount of each bank entry involved, and the drawdown figure it should match.
Related: my drawdown does not match my reports
- The Drawdown Paid Sales Report, exported before you draw down, is the accurate record of what is in your drawdown.
- The Invoiced Sales Monthly Report lists what was invoiced in a month, including unpaid invoices. Your drawdown can also include invoices that were unpaid in earlier months and completed this month, so some difference is normal.
- Unpaid sales (invoiced, but not enough funds to cover them) and refunds or charges from earlier in the month can also cause differences.
- If a refund or reversal is missing from the drawdown, check it has been invoiced. On the person's profile, scroll down and select Create an invoice.