If a customer has underpaid the invoice or if there have been fees or commissions deducted at the source of the incoming payment, follow these steps to reconcile the invoice:
Example:
- Invoiced amount: £920
- Payment received in the bank: £880
- Commission/fee deducted at the source/underpayment: £40
Steps to Reconcile:
-
Access Bank Transactions:
Navigate to the Bank Transactions section. -
Open Expanded View:
Select 'Split/Attach' to open the expanded view. -
Attach/Match Document:
Click on 'Attach/Match Document'. -
Select Relevant Invoice:
Choose the appropriate invoice from the list. -
Manually Adjust Paid Amount:
Adjust the 'paid' amount manually to include the commission or fees deducted at the source of the payment. -
Confirm Selection:
Press 'Confirm selection' to proceed. -
Review Remaining Amount:
After adjusting the 'Paid' amount, there will be an amount 'still to review'.
-
Split Supplier:
Click the 'Split Supplier' button to add 'Stripe' as a 'supplier' and record the commission and fees deducted at the source of the payment.
Once you've completed these steps, your invoice will be marked as 'paid' on your invoices page, and your VAT return will generate the expected figures.
Note: It's important for users to ensure that all invoices and credit notes issued to customers comply with HMRC’s rules on issuing invoices and credit notes. For more information and to stay updated with the latest advice, please refer to the government’s website.