How do I credit the invoice with just the VAT amount?

Question

I have a customer who is VAT exempt. I didn't know this when issuing the invoice. They have paid the inv amount minus the VAT.

Paul Morgan · Accepted Answer

Hi Dino, 
 To be able to create a VAT only invoice or credit note, you must first ensure that the Item VAT Amendable setting is selected. To do this go into: 
 
 Settings > Company Preferences > VAT . 
 Ensure that the Item VAT Amendable check box is selected > OK . 
 
 If required, this option can be cleared once the VAT only invoice or credit has been entered. 
 You can then change the VAT element of a sales credit note using Edit Item Line. To do this go into: 
 
 Invoices and credits > New credit > create a service credit and enter the required details. 
 Click the first invoice item > Press F3 on your keyboard. Alternatively, double-click the required line or click the arrow next to the invoice details. 
 In the Values section, ensure that the Unit Price is zero > in the VAT box enter the required VAT amount. 
 In the Posting Details section, ensure that the correct tax code appears, for example T2 > OK > Save > Close. 
 
 If this has answered your question, please click on the &lsquo;This helped me&rsquo; link below.

Sean White · Answer

Hi Stephen. 
 Thanks for using Sage City. 
 Yes the instructions above are what you would need to follow in order to raise a VAT only credit note. Alternatively, you can raise a batch credit from customers if you didn't want to raise a service credit. 
 Regards, 
 Sean Sage UKI

Sean White · Answer

Hi Stephen. 
 Not a problem at all, we're here to answer any questions you may have. 
 With the batch credit you won't be able to issues any kind of document unfortunately. If you do need to produce this, you would need to go down the invoices and credits option and create a service credit note in there so you can save, print and issue to the customer. 
 Let me know if you need anything else. 
 Regards, 
 Sean Sage UKI

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How do I credit the invoice with just the VAT amount?

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