Equivalent of a Sage Internal Credit

[WalkerTim]

Hi,

At the end of last year, we missed some payments into our previous accounts package, Sage; the money was accounted for as Foreign Sales. I have been advised that on Sage, we would raise an internal credit note to cancel the invoice as these don’t affect the VAT (preventing the Credit appearing in Box 6 - i think).

Does anyone know how I should do this in Quickfile? I tried to raise a Credit Note to and post it to an new Sale Account Code (to make things easy for the accountant later) but it doesn’t show as an option in the drop down.

In short, I need to credit the invoice for the books but not mess up the VAT.

[QFMathew]

Hi @WalkerTim

Can I just clarify your post?

Is it a case of the credit note being included in a VAT return in your opening balances from Sage, and you just want to exclude it from your QuickFile account?

If this is the case, did you create a credit note on Sage for this prior to moving to QuickFile?

[WalkerTim]

Its to avoid a credit note being included in a future VAT return.
The opening balance was carried over from Sage. It shouldn’t have been (the payment was counted as a random foreign sale in error so has effectively been accounted for twice). As it is now stated in the accounts, I can’t just delete it. I need to credit it and not show it on the VAT - I could just mannually reverse it but our accountant says that in SAGE you can create an internal credit note with a T9 (out of scope for VAT) but I’m nor sure how to do this on Quickfile.
So, its a bill that exists as an opening balance and I need a credit note that won’t affect the VAT.

[QFMathew]

@WalkerTim

I could just mannually reverse it but our accountant says that in SAGE you can create an internal credit note with a T9 (out of scope for VAT) but I’m nor sure how to do this on Quickfile.

You can enable “Out of scope for VAT” for the client in the client settings, and then create a new sales invoice with a negative value, ticking the OOS box on the invoice/credit note itself.

However, the only downfall I foresee is the refund would need to be to a bank account of some sort.

It’s worth checking with your accountant on how exactly to record this, as perhaps a journal reversing the values of the invoice could do the job. Journals aren’t included in the VAT return, so these would be excluded anyway.