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May 27, 2022
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Hi, I have two invoices that have been paid, but for various reasons, less than invoiced. How can I mark them as paid rather than partially paid and write off the rest?

  • May 27, 2022
  • 2 replies
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Best answer by paul72

Hi @finance-cassonan 

 

You can either raise a credit note for the difference - use this credit to clear the balance owing.

If it's a 'goodwill' write off, that's probably the easiest way.

 

Or, if it's a non-payment or unrecoverable, enter a Bad Debt journal to write off the balance.

If VAT is involved, there are certain rules around reclaiming following a bad debt ... see https://www.gov.uk/guidance/relief-from-vat-on-bad-debts-notice-70018

 

Hope this helps.

2 replies

paul72
paul72Answer
May 27, 2022

Hi @finance-cassonan 

 

You can either raise a credit note for the difference - use this credit to clear the balance owing.

If it's a 'goodwill' write off, that's probably the easiest way.

 

Or, if it's a non-payment or unrecoverable, enter a Bad Debt journal to write off the balance.

If VAT is involved, there are certain rules around reclaiming following a bad debt ... see https://www.gov.uk/guidance/relief-from-vat-on-bad-debts-notice-70018

 

Hope this helps.

May 27, 2022

Hello Finance-cassonan, 

 

Welcome to the Community page, 

 

So what you would need to do is go into the invoice and record the actual payment then do a credit not to pay off the invoice and if it is for bad debt then you will need to follow the steps on this article here.