Cancel invoice balance

Accounting
1

I issued a VAT invoice in October 2023 which, as require3d was 50% paid. The client and I have agreed that the balance is not payable. How do I account for this, please?

2

Hello @Newchodge

You could credit the invoice off to a write off code (8100)

3

Thanks. Does that correct the VAT position?

4

Hello @Newchodge

That’s right the credit note would get picked up in your next return reversing what has been reported to HMRC.

5

Thank you for your help

6

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