Question asked by Alan Bennett 1 year ago
Hi, I'm a photographer and sold some old kit to a camera shop. I created an invoice for this so the proceeds from the sale show as my income.
These proceeds have been applied to a store credit and I will put this towards a new camera.
I'm not sure how to show this type of transaction.
There isn't actually any money coming into my account that I can apply to the invoice, as it's a store credit.
Thanks
Hi Alan,
To enable a sales account code for the purchase credit note, you must head to Settings > Accounting > Account codes > Tick show in purchases for the relevant account.
And for the voided sales invoice, the VAT will be removed. Instead, you must include the same VAT on the purchase credit note. This will reduce the amount in box 4 instead of increasing box 1. In effect, box 5 will be the same.
The purchase credit note can then be offset against future purchases.
Tommy
Best answerAlso, the voided invoice has VAT on it that I've charged to the camera shop. What happens to that? Is it still accounted for on my VAT return?
Thanks Tommy
Do you have a guide for creating a purchase credit note coded to a sales account?
Hi Alan,
Thank you for your patience!
Assuming the purchase of the old kit is fully depreciated, you can void the sales invoice and create a purchase credit note coded to a sales account.
Tommy
You must 