Hi. Is this reasonable? Company issued a VAT invoice with the full value of transaction, plus VAT. Customer takes up on the offer of a discount - is it reasonable to issue a credit note against the original invoice for the difference? If not, I'm assuming manual journals Thanks
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Hi Johnny
is this just 'book' entries to keep the accounts right? Depends on the software as some will not allow journals to debtor accounts, so this would be where you use dummy credit notes perhaps.
Of course this is assumes that said company have the right wording on their invoices regarding discounts - with negates the need for additional paperwork between them and their customer.
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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
Hey - it is let's say using generic software. I just figured the credit note scenario would work in this situation. This way, the credit would take away X from net, and X from VAT. Then having said that, there would need to be an entry to hit the discount allowed a/c.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Fab. I also use it when I have foreign payments received and the foreign bank has say taken a fiver off to make the payment, so I raise a credit note to debtor and code to bank charges. Also, on the creditor side when I'm sorting imports invoices for goods outside EU where you can't claim the import Vat back from the Shipping invoice but have to wait until you get the forms from HMRC.
Loads more examples for such a simple little trick.
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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
