Hello there, @robsoncraig,
Yes, you can create a credit note for the VAT amount that has been charged to your customer's previous invoice. This way, you can apply it to the second invoice. Here's how:
- Go to the Plus icon (+) at the upper right.
- Select Credit Note under Customers.
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- Make sure No VAT is selected on the Amounts are field.
- Enter the customer name, date, products/service items, quantity and amount.
- Click Save and close.
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Then, you can apply the credit note through Receive Payment. Here's how:
- Go to the Plus icon (+) at the upper right.
- Under Customers, choose Receive Payment.
- Select the appropriate customer.
- Under Outstanding Transactions, first click the second invoice you've created.
- Under Credits, select the Credit Note.
- Verify that the total pay amount is correct after applying the Credit Note.
- Click Save and close.
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You can check out this helpful article for more information: Enter and Apply a Credit Note or Refund to your Customer.
This will get you in the right direction, @robsoncraig.
I'll be here to help if you need further assistance. Have a great day.