Hi, I have paid rent monthly for the last year but have accidentally paid VAT. My landlord has just refunded my VAT and my accountant has asked me to raise a credit note to account for it. I can’t raise a credit note that isn’t attached to a specific purchase but don’t want to manually go through the last 12 purchases and raise individual credit notes for each of them (especially as the refund came as a lump sum). Can anyone help with what I’m meant to do?
You can create a negative invoice, but to account for the VAT element only, this will be a bit require a bit of a workaround.
So if, for example, it was a refund of £100 worth of VAT, you could create a credit note similar to this:
When you save it, it will ask you where you wish to allocate the refund, so just pick the bank account it was refunded to, and a pre-tagged transaction will be created for you.
Chances are, if you use a bank feed or similar, this will create a duplicate entry. Simple delete the untagged entry, and everything should match up.
Hope that helps!
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