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jonathan21
January 25, 2021
Question

How do I reconcile an open invoice, if the company I worked for treated me as an employee (withheld taxes and paid superannuation) but paid full for equipment hire?

  • January 25, 2021
  • 1 reply
  • 0 views
I'm a sole trader with an ABN, but sometimes I work with agencies that that treat me as an employee.

1 reply

Bonny_
Bonny_
January 25, 2021

Hi Jonathan,

 

I'm assuming that the open invoice is regarding the equipment hire that the company paid for. If the company is paying you for an expense reimbursement, then you can create the company as a Customer and record a payment from them to that invoice. However, I'm unsure if that's the scenario around this open invoice.

 

In any case, I would recommend reaching out to your bookkeeper or accountant for their advice on how to record this.

 

Bonny

J
jonathan21Author
January 25, 2021

Hi Bonny,

 

The original invoice is something like (numbers made up) :

 

Invoice #001

Line 1 : Service provided ........ $1000.00

Line 2 : Equipment Used .........$ 400.00

 

And they paid 2 separate times. One was for the equipment at say, $400, the second one was for something like $810 (taxes taken out)

 

In this case I have an open balance of $190

 

I'm not sure what to do in this scenario.

 

 

 

 

Bonny_
Bonny_
January 25, 2021

Hi Jonathan,

 

Thanks for that, it clarifies things!

 

In that case, you can create an Adjustment Note for $190 and have it apply to the open balance.

 

First, you'll have to turn off Automatically apply credits:

  1. Select the Gear Icon on the top-right, then select Account and Settings.
  2. Navigate to Advanced, then in the Automation section, turn off Automatically apply credits and Save.
  3. Now go to +New, then Adjustment Note and create an adjustment note for $190.
  4. Select +New again and select Receive Payment
  5. Tick the open invoice, then tick the Adjustment Note under the Credits table, which is further down the Receive Payment page.
  6. Then select Save and close.

Hope this helps!

 

Bonny

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