Modify invoice amount after locked VAT period

Support
1

Hi

I’ve issued an invoice to a client in the last VAT period and need to make an amendment…

The labour was invoiced a few hours too many and the client has asked us to reduce the labour costs on the invoice before making a payment. We need to reduce the invoice by £60 (+vat) but we’re unable to modify it as it was from a previous VAT period though.

Is there a work around for this? If not, what is the best way to fix the issue?

Credit note allocated to the invoice possibly?

Thanks, Davie

2

If you’re on accrual accounting then yes, a credit note is the way to go. If you’re on cash accounting you should just be able to go in and edit the invoice as a cash accounting VAT return only locks payments, not invoices.

3

On cash accounting we also lock the invoice, this is to prevent changes to the composition of VAT, i.e. if you change the invoice from zero rated to vatable, this would affect the VAT return.

Credit Note is the way to go!

4

Thats not a problem. Ill do a credit note then. How do I allocate a credit note to a particular invoice though? I dont want the invoice to always show as outstanding so can I raise a credit note for the remaining balance and use that to clear the invoice? If so how do I go about that?

Thanks again

5

Create the credit note from the relevant invoice (in the “more options” drop down at the top) and when you come to save it should offer you the option to reduce unpaid balance.

6

I tried it that way. It would allow me to create a credit note in the more options menu if the invoice was still fully outstanding. As soon as i made a part payment to it i couldnt raise a credit note for it though. Am i just overlooking something here? Apologies but accounting isnt my forte.

7

I run a retail shop so I’m afraid I don’t tend to use credit notes on the sales side (I create a single daily invoice for takings, any refunds are recorded on the EPOS side) and my VAT is accrual rather than cash accounting. You’ll need @Glenn or @QFMathew to advise on this one.

8

Credit Notes should be possible on part paid invoices. Do you have the invoice number and we can take a look for you?