How do I write off an outstanding amount on a suppliers invoice?

[JessicaFerguson]

Hi All, please could someone offer advice on the best way to record this:
I have an old invoice for a supplier with an outstanding balance. The supplier did not complete works to the standard that was agreed and withheld product. The work/price was in negotiation but now the supplier has refused to return and complete. What would be the best way to write this off please as this will have to be clear for our accountants/auditors at year end.

[QFSteve]

Hello @JessicaFerguson

I found this in the forum which may help.

Purchase invoice write-off

Our supplier has closed its operation, but we still have an unpaid invoice from them. Now there is nowhere to pay, so we want to write off these bills somehow. Thank you in advance!

[JamesWhitelegg]

Yes, a credit note against the outstanding bill is the best way to do this, especially if VAT has been claimed, as this way you won’t overclaim the input VAT. If the net amount is small, then credit the original p&l code. If the amount is large and / or the original invoice was input in a prior year than you may need to discuss with your auditors as to how they want you to show this.