I have a query and I hope you can help.
Recently a company that had provided a service to us needed to reimburse us for some money as we were unhappy with the service.
They asked us to create an invoice for the amount, which I did in Quickfile. They have now paid this.
However I have realised that this was probably not the best way to do this as it will now show as an income and appear as though my turnover is actually higher than it is.
How can I rectify this?
Thanks
Chiara
If you’re not VAT registered, whilst the turnover is higher, your expenses are also higher by the same amount, therefore your overall profit has not changed.
Although if you wish to correct this, as you have already issued them with a sales invoice, you will need to first send them a credit note. The supplier should then issue you with a credit note, finally the refund into your bank account should be tagged as a ‘Refund from a supplier’ and the respective purchase invoice selected.