Amazon Gift Card

When you’re processing purchases whatever VAT was calculated by the supplier should always take precedence over anything calculated by QuickFile. The invoice says you were charged VAT of £11.84, so that’s the amount you are entitled to reclaim.

You could simply add an extra line to the purchase invoice for -30.13 at 0% VAT, which would show in your books as printer ink at £29.08 and VAT of £11.84.

Alternatively, and perhaps more accurately, you could split it into two:

  • Create a new nominal code from your chart of accounts in the “sales” range for suppliers goodwill payments and tick the option to also allow this code to be used on purchases.
  • Create an (unpaid) purchase for the full £59.21 + VAT £11.84 tagged to stationery (or wherever you normally put printer ink).
  • More options → credit note, and make the credit note be -£30.13 @ 0% VAT, assigned to the new suppliers goodwill code

This will leave an outstanding balance on the purchase of £40.92, for which you can record payment in the usual way. Your books will show £59.21 expense for the printer ink and £30.13 income for the goodwill payment. And the VAT return will include a total (for the purchase minus credit) of £29 in box 7 and £11.84 in box 4.

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