We sometimes hire small plant from a supplier. Often the deposit taken at the time of hire (to cover damage, etc.) is larger than the final invoice and we then receive back the balance owing. What is the easiest way to record this? Both supplier and ourselves are VAT registered though I understand VAT is out of scope on deposits.
Hi Dave,
Ok let's say your original deposit was for £900 and the supplier's invoice total was £600, leaving a £300 refund. To record this in Solar Accounts:
Create a Money Paid Out transaction for £900 and set the Type to 'Advance Payment'
Create a Purchase Invoice for £600. When you save this invoice Solar Accounts will offer to apply the advance payment to it - click 'Yes'.
Edit the advance payment you created in step 1 and change the Amount Applied figure from £600 to £900
The Purchase Invoice will now act exactly like a Purchase Credit Note. Select it and click menu File > New > Refund for Selected Credit.
Regards
