Question asked by Alan Bennett 3 months ago
I recently sold some old camera equipment to a shop and had to provide a VAT invoice to them. (I'm VAT registered) The total of £444.16 (including VAT) is now a pending payment invoice, as the actual amount has been given to me as store credit. I'm just not sure what happens with this invoice now, as no money is going into my account.
Hi Alan,
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.
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 answerOne item wasn't fully depreciated Tommy
I did a journal that hopefully explains that, fingers crossed!
You must 