I have an invoice which the customer is paying in installments, so far they have made 4x £700 payments, but one of the payments was somehow duplicated in the bank feed. As the payments are locked by a VAT return, what is the correct method to correct this?
Hello @Mark_Manning
If an invoice/payment is vat locked you would have to reverse it
You would credit the invoice and refund the credit note (to reverse the payment).
I’m sorry, I think I may have misunderstood, if I were to credit the invoice, then refund the credit note, that would correct the amount they had have paid, but wouldn’t correct the issue of the balance being incorrect.
To confirm, just in case you misunderstood the issue rather than I misunderstood the answer, I didn’t actually receive the payment twice, it’s just that in the bank feed the payment (which arrived only once) is in there twice, so their invoice is showing that they owe £3,479.15 where in fact they still owe £4,179.15.
It doesn’t coincide with my end of year, so from my side I guess I could just delete one of the other payments, but the issue would be that their statement (which they have access to) would be wrong and they are likely to repeatedly query it.
Hello @Mark_Manning
I checked for you and one of the payments was a manual transaction (not from the feed)
You could go with this option - “guess I could just delete one of the other payments”
Or
The only other way would be the credit and refund as I said as the figures were reported to HMRC on your last return and are vat locked
The amount credited would then have to be re invoiced to keep the amount owing correct.
Thanks Steve, yes I assume a manual transaction was added as the bank feed didn’t initially pull it through but then after it did get pulled through the real one was also tagged.
So rolling back the VAT return is not something which should be done then?
Hello @Mark_Manning
No as once rolled back the transactions are un marked as reconciled and changes made are locally and not reported to HMRC meaning the figures HMRC hold would be incorrect.
This is why I mentioned the credit/refund option as it would be picked up on the next return to correct figures HMRC hold.