Reversing invoices on Old Wave
TWilliams
Member Posts: 3
Hello,
I have read a previous solution to this issue but still not quite sure how to apply it to my situation.
I raised an invoice for eg $75 and client paid a deposit of $35. Outstanding to be paid is $40 which is currently showing in Accounts receivable. She later pulls out of the class so I have 2 things to do:
- Reverse the entire transaction on the invoice itself to reduce my revenue for the period; and
- Show the refund of $35 on the invoice itself.
I can capture the unpaid balance of $40 as Unpaid income to nil out the invoice but that would be a misrepresentation of what actually happened.
Please advise on how to deal with both issues above.
Many thanks.
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Comments
Hey @TWilliams, what you're describing is a situation where you'd need to write the invoice off as bad debt. You mentioned reading a solution for this previously; was it this guide from our Help Center? If you haven't seen that yet, give it a look. However, if that's what you read and still didn't find that it was fitting for you, please let me know so we can flesh this out in greater detail.
Hello,
Thank you so much. No not this guide. Someone asked a question recently but the response was better suited fr those on the new Wave. Can't seem to find it anymore.
Writing it off as a bad debt will not work because I need to reverse the VAT element as well. So I need to reverse the whole transaction from the income side and also show the effect of the refund on my bank account.
Many thanks.
@TWilliams I'm wondering if this is the thread you were looking at? https://community.waveapps.com/discussion/comment/12488#Comment_12488 -- in any case, since you are on the older version of our software.. I feel as though these steps might be beneficial for you here;
Either add a negative product and apply tax to it on the original invoice, or create a new invoice with a negative amount with tax applied. From there, you will want to use the refund transaction to mark the invoice as paid.