Invoice / Credit

[Vincent]

I have sent an invoice for £695.00 to my customer, but out of that my customer has taken a fee of £550 for services rendered on this particular invoice and has paid the balance of £145 into the bank, how would I show this on the accounts, any help would be appreciated

[Darren_Smith]

Quickfile has this post:

Contra-Invoicing, Same Customer and Supplier, Netting-off receivables and payables

Do you have a recommended method for ‘netting-off’ customers who have made supplies i.e. transfer the balance on an unpaid purchase invoice to the Customers account and apply against outstanding invoices. Do not want to use a credit notes because that would understate values in the P&L.

It involves creating a ‘dummy’ bank account, but it might help.