Hi, My monthly mobile telecoms bill from O2 has been receiving a large monthly discount for 6 months. There is usually a balance of £1 to £2 to pay.
This month however the bill has arrived as -£1.20 (incl VAT). It isn’t a refund coming in to my bank, it’s a credit to be held on my account and will be applied next month when I deduct it from how much I pay on the following invoice.
The only options I see for credit notes require my to enter the “Paid From” and “Payment Method”, which don’t apply in this scenario.
I’m sure I’ve been able to do this in the past with no problem (it was probably a year or two ago and I was able to just apply a credit to sit on the supplier account until needed)
Technically it’s still a credit note. If you take the last paid invoice and create a credit note for that, when you save you will have an option to “Hold funds on account”, you can then offset this later against a future invoice.
Ah, I see. Just tried that but there is an existing credit note on the last invoice (the payment of that last invoice) QuickFile won’t let me add another figure to the credit note, it gives a message saying that the credit note cannot exceed the original value of the invoice.
I suspect this is because there has been a VAT report submitted between then and now and I can’t make changes to the last invoice or payments?
You can still issue a credit note from an invoice that has been included in a VAT return, but your credit note can’t exceed the value of the invoice. If one invoice has already been CN’d then just go to the one previous.
For simplicity what I would do is just enter the next invoice with an amount that matches the NET amount due, less the CN. That you you don’t need to record the CN at all. No point in tying yourself in knots over £1.20.