Hi, this is probably simple, and I having circular arguments with myself!
I've been asked to invoice a customer say the amount is £10500 plus VAT. The customer had previously paid a deposit of £5000, plus VAT. So they paid £6000.
My manager wants to invoice but minus 50% of the deposit - he says this is £2500. He then wants to invoice the remaining amount plus VAT. Surely if I am taking off half the deposit already paid, I would be taking off £3000 and then the remaining sum would be calculated?
Hi I got a bit confused because the numbers dont seem to add up (or maybe Im going do-lally today)
So the total job is £10500 plus VAT = £12600 Deposit paid £5000 plus VAT = £6000 Balance left to pay = £6600 (Ie this is 5500 + Vat of £1100)
So either:- Invoice £10500 plus VAT and dont invoice for balance payment, just send a reminder/statement showing they owe £6600
OR:- Invoice for the amount paid so far £5000 + VAT of £1000 then when you want them to pay the next instalment Invoice for the balance of £5500 + VAT of £1100
The question is - should you invoice/account for the whole amount in one go if that represents the 'sale'?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
