I have a situation whereby I would like to write off a purchase invoice regarded as outstanding. The scenario is a bit complicated so I’ll explain with a simple example.
Purchase Invoice = £10,000 + VAT £2,000 = £12,000
Invoice paid in full.
As delivery deadline wasn’t achieved by supplier so a full refund could be demanded.
Full refund received net of VAT = £10,000.
I assume supplier had already declared and passed on the £2,000 VAT amount to the VAT tax office.
Then when I queried the £2,000 the supplier went into administration.
So in quickfile the invoice is regarded as outstanding = £12,000 - £10,000 (Credit Note) = £2,000
How do I write-off/void this invoice because it’s not really outstanding?