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Linking bank debits and credits for cancelled orders

I have recently booked, then changed, then ultimately cancelled a hotel booking due to changing job requirements, which has resulted in two debits and two credits on the Bank Account. Do I need to create Purchase Invoices and Credits for these, or is there another quicker way to link/tag them?

What is the sum of these transactions? Assuming it is zero you could theoretically just delete them but I always tag them so the bank statement accurately reflects the actual bank statement.

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Thanks Lurch,
The sum is zero but, like you, I’d prefer not to delete them. When you say always tag them, do you mean by creating Purchase Invoice and then Credit Note?

Hi @robotsound2,

If you want to keep the paper trail, then yes, you can create a purchase invoice and then a credit note against the invoice

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Thank you, Beth. I was not so concerned about the paper trail, but was just wondering if there was a quicker way of doing this with Journals perhaps, rather than create PI’s an PC’s, as it is likely to happen fairly often.

transfer to petty cash account in and out.
This way it would not go into VAT return either.


This is bad advice. If you had an invoice and paid it then were refunded in another period whilst it is true the net result would be zero both to yourself and HMRC they generally don’t like it if you decide when and how you should account for VAT.

I agree. Paper trial at all times.

Thanks all. I have gone the full paper trail route.

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From question it looks like it happened on same day.
which is in fact a contra entry.

Looks like it was spanning several days to me, but it doesn’t specify. In general though I’d advise against not putting things on the VAT return regardless of what the overall balance is.

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