Unallocated Credit Note

[zample]

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?

Thanks

[QFMathew]

Hi @zample

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!