Credit notes
System
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Hello,
I started the foundation course in September at college. For homework I was asked to do a Unit 2 skills test.
The question that has confused me is that I have an invoice and a credit note from the same company that needs to be posted to the cash payments book. The invoice has a 2% settlement discount. I calculated the payment less the settlement discount added on the VAT then deducted the amount on the credit note. However the answer given is that the net credit note is taken from the net invoice then the 2% settlement discount is deducted then VAT added onto this. Can anyone advise if this is correct way to do this?
The figures given are:-
Invoice £42500.00 VAT £7288.75 Total £49788.75
Credit £4250.00 VAT £728.87 Total £4978.87
Total net £38250.00
2% discount £765.00
Payment due £37485.00 VAT £6559.88 Total £44044.88.
Thanks,
Bernie
I started the foundation course in September at college. For homework I was asked to do a Unit 2 skills test.
The question that has confused me is that I have an invoice and a credit note from the same company that needs to be posted to the cash payments book. The invoice has a 2% settlement discount. I calculated the payment less the settlement discount added on the VAT then deducted the amount on the credit note. However the answer given is that the net credit note is taken from the net invoice then the 2% settlement discount is deducted then VAT added onto this. Can anyone advise if this is correct way to do this?
The figures given are:-
Invoice £42500.00 VAT £7288.75 Total £49788.75
Credit £4250.00 VAT £728.87 Total £4978.87
Total net £38250.00
2% discount £765.00
Payment due £37485.00 VAT £6559.88 Total £44044.88.
Thanks,
Bernie
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