Total value of Invoice/Credit note cannot be zero

Hi,

I recently supplied a selection of fudge to a local retailer. Unfortunately, it didn’t sell, so as a measure of good will I wish to replace the selection, without charge. I have attempted to raise an invoice, but when I give 100% discount it states “Total value of Invoice/Credit note cannot be zero”. Is there a way around this? Do I need to raise an invoice? Can I simply replace the fudge without paperwork? Many thanks.

Ian

If you’re accounting for the value of it in your figures (eg stock), then you could either:

  • Journal the value
    Or
  • Raise an invoice for the full balance and credit it

An invoice with zero balance has no accounting relevance, which is why you can’t create one.

I second @Parker1090 here.

You’d raise the invoice for the full value of the fudge supply and credit note the whole invoice.
This way you will keep control of the costs, as later in time you may not remember that the fudge did not sell and wonder why the costs of particular month where very high.

There is nothing wrong however with just replacing the fudge without any paperwork.

Disclaimer:
I’m not an accountant, in case of any doubts seek advice from a professional.

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