Sales invoice that includes deduction for charges

[Christopher]

Hi. I receive a vessel invoice from the fisheries that identifies:
Gross sale value of catch
Less charges for services
Less commision which is subject to VAT
Net amount that I will receive

If I enter this as a sales invoice because it is income how to I identify the deductions (one that is subject to VAT and one that is not)?

Do I have to record the sales by raisng a sales invoice and then enter a purchase invoice for the charges?

Any help is appreciated as I am just transferring all my records from an excel spreadsheet.

[QFSteve]

Hello @Christopher

Do I have to record the sales by raising a sales invoice and then enter a purchase invoice for the charges?
Yes you would

You could also use a merchant account for the fisheries to keep all of the payments together

The image shows the movement of payments for the transactions and would be tagged as per below

• Sales invoice for £10000
• Purchase Invoice (charges for services) £1000
• Purchase Invoice (commission which is subject to VAT) £1000
• Bank Transfer for the remaining amount to the actual bank £8000

https://support.quickfile.co.uk/t/handling-payments-from-merchant-accounts/8865

[Christopher]

Thank you for a prompt response which has proved really useful. I am not sure whether I need to raise a new query but if I receive fuel duty rebate how do I recird this? Also VAT refunds?

[QFSteve]

Hello @Christopher

Fuel Duty Refund → Are you referring to Fuel Duty Relief?, are you a Forecourt retailer?
Please provide as much information as possible.

VAT refund → Record a Money In transaction on your bank, when tagging it select “Tax refund from HMRC” and select “VAT”. It’ll post it the right code

[Christopher]

Hi Steve

It is the Fuel Duty Relief that I can claim as a Commercial Fisherman.

Regards

Chris

[QFSteve]

Hello Chris

Fuel Duty Refund

There are 2 ways to handle the Fuel Duty Relief.

Method 1

• You create a new nominal under the same category to track the rebate, see below:
• Post a Money In transaction on the bank on the date received and tag it as “Something else not in this list” and select the new code

Method 2

• Post a Money In transaction on the bank on the date received
• You can tag the rebate directly to the same nominal where you post the purchase of fuel to.

This would reduce the the fuel expenses claimed by the amount of the rebate

Once posted, you can see the fuel expense of £500 as a debit and £100 fuel rebate as credit (net expense £400) using method 1

or using method 2, the expense is reduced by the £100 rebate to £400

I would recommend method 1 as your accountant is alerted to the rebate and provided with an audit trail to check against the claims.

[Christopher]

Thank you Steve - that is really helpful and much appreciated.

Regards

Chris