I send my customer and invoice of 7590£ for transport services, but he paid me 7350 because he deduct 240£ for trailer hire. Both are with VAT incl.

I'm delighted to assist you, Gpsem! I know two approaches that will streamline handling this invoice adjustment in QuickBooks Online (QBO).  I'm excited to guide you through the steps to ensure everything is recorded accurately and efficiently.

The first method involves adjusting the original invoice to include a deduction for the trailer hire service item. The second requires receiving full payment and recording the deduction as a separate deposit.

Both approaches will correctly reflect the £7,350 payment received and account for the £240 trailer hire deduction. Feel free to choose between the two that best fit your bookkeeping preferences and VAT reporting needs.

Method 1: Adjust the Original Invoice

This process involves modifying the original invoice to include the deduction for the trailer hire.

Here's how:

1. Open the Original Invoice
2. Add a new line item for the trailer hire deduction.
3. Click on Add New in the Product/Service dropdown.
4. Name it like “Trailer Hire Deduction” and set it to an income account.
5. Enter 240£ as a negative amount to reflect the deduction.
6. Make sure to select the appropriate VAT rate for this deduction.
7. Hit on Save below.

Method 2: Receive Full Payment and Record Deduction Separately

This method involves receiving the full payment and recording the deduction as a separate deposit.

Here are the detailed steps:

1. Receive the full payment of £7,590 against the original invoice.
2. Create a new deposit
3. Go to the + New button and select Bank Deposit.
4. In the Add funds to this deposit section, add a new line.
5. Select an appropriate expense account for the trailer hire.
6. Enter £240 as the amount negative to reflect the deduction.
7. Select the appropriate VAT rate.
8. Save the deposit.

Moreover, I'll share these articles that will guide you in categorising different segments of your company and generating reports to see how your business is doing.

• Customise reports in QBO
• Run reports in QBO
• Run reports by class in QBO

We encourage you to revisit the Community space if you have any other concerns regarding invoice adjustments in QBO. If you'd like to take care of other entries in your sales or run some reports, let me know by replying to this thread. It would be our pleasure to assist you every step of the way.