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raise an invoice for an invoice part payment
Here's the scenario, which might go some way to explaining the title!
I have a Client who cannot pay a previous invoice which I have raised in FAC with a single payment, and we have agreed a part-payment scheme (ie a number of smaller payments in the next four months, no interest or any other complications).
This would normally be easy in FAC (allocate each Bank A/C credit entry from this Client to the invoice, with the original invoice keeping a running total of how much is owed) however the Client has just thrown the following spanner in the works:
They cannot release a series of partial payments against one invoice, they can only release payment for the invoice's full amount.
I can obviously raise a new invoice for each partial payment, but how can I "nicely" link payments for these new invoices against the original invoice, without falsely inflating my profit & sales figures, VAT liability etc?
I could create a number of manual payments for the original invoice as each partial payment invoice is created, but this artificially increases my "Current Balance", and causes the FAC Bank Account entries to get out of synch with the actual bank statements which is not good news.
I could allocate each payment received from the Client against the original invoice, and raise a credit note against the associated part-payment invoice, but how to link the two together? What effect would writing off the part-payment invoice have against my end of year balance sheet, P & L etc?
Any further suggestions? Thanks
I have a Client who cannot pay a previous invoice which I have raised in FAC with a single payment, and we have agreed a part-payment scheme (ie a number of smaller payments in the next four months, no interest or any other complications).
This would normally be easy in FAC (allocate each Bank A/C credit entry from this Client to the invoice, with the original invoice keeping a running total of how much is owed) however the Client has just thrown the following spanner in the works:
They cannot release a series of partial payments against one invoice, they can only release payment for the invoice's full amount.
I can obviously raise a new invoice for each partial payment, but how can I "nicely" link payments for these new invoices against the original invoice, without falsely inflating my profit & sales figures, VAT liability etc?
I could create a number of manual payments for the original invoice as each partial payment invoice is created, but this artificially increases my "Current Balance", and causes the FAC Bank Account entries to get out of synch with the actual bank statements which is not good news.
I could allocate each payment received from the Client against the original invoice, and raise a credit note against the associated part-payment invoice, but how to link the two together? What effect would writing off the part-payment invoice have against my end of year balance sheet, P & L etc?
Any further suggestions? Thanks
I’m happy because its not your problem, just need everybody to use FAC!
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Inappropriate?Olly,
Sorry for the delay in getting back to you.
Do you need to retain that original invoice at all? Or has it already been accounted for (for VAT or some other reason)? -
Inappropriate?I'd probably want to keep the original invoice, certainly to avoid VAT/Corp Tax complications, and it also serves as a placeholder to record the original amount invoiced and when.
In my situation, while I haven't yet submitted a VAT return for the period covering when the original invoice was raised, I will need to submit one (and possibly two) before the last payment is scheduled to be received.
EMPLOYEE
