Pay invoice from nominal balance

Is it possible to pay a sales invoice from funds sitting on a nominal account

No, you’d have to go via a bank account. Mark the invoice as paid into your drawings/director loan account, then go into the same account and manually create a new money out transaction to balance the invoice payment, tag that as “something not on the list” and select the relevant nominal that you want to debit.

But maybe a better question is what kind of nominal do you want to “pay a sales invoice from”? My above suggestion is the way to go if you have a liability nominal on your balance sheet (like money you have been lent and you’re offsetting some of the loan against a sale rather than paying it back), but if you’re just trying to do contra invoicing where you’re buying from and selling to the same entity then you don’t need to jump through so many hoops.

Hi

From your previous suggestion, I have changed my suggestion of “Nominal” to a Client Holding Bank account.

It is funds received from a tenant for Rent on behalf of a Landlord, Rent, less commission, is then paid to the landlord, leaving a commission to be allocated to the relevant sales invoice.

I have set up a Client Holding Bank account in QF and from the bank current account we do a bank transfer into the Holding Account for the incoming rent, then pay the commission invoice out of there, and also transfer the payment out to the Landlord from the bank current account to the Client Holding Bank account.

This seems to work.

Do you have a better solution, especially as the transfers to the Holding account does not include any reference in the description to the Client who it has come from or going to.

Is there any way the transfers can show who it is received from and paid to?

John