Do I invoice the whole amount???

[emmac]

Hello, I have been asked to raise an invoice for the sale of a vehicle we had on finance but the person who purchased the vehicle from us paid the vast amount of the outstanding finance direct to the finance company and left a small balance outstanding. My boss thinks I need to raise an invoice for the whole amount but I feel I should only raise the invoice for the balance outstanding as that is the amount we will be receiving, otherwise won't my sales ledger be out by the amount paid direct to the finance company!! :

[brucedenney]

But the finance company should appear on the balance sheet and that should be clear by the sales as well.

Scenario: £10k vehicle £8k Finance £2k to us

Effectively you are being paid £10k and immediately handing over £8k to the finance company clearing your debt to them.

So raise an invoice for £10k
Receive £2k against that invoice
You now want to do a customer receipt for the 8K to go against the load account in the balance sheet which should already have the 8k finance owing showing on it.

You can do it as one transaction! There are a couple of ways to do it.

You could receive the 8k as petty cash and then make a bank payment to the balance sheet account showing the finance creditor.
You could do a dummy credit note to the balance sheet for the finance credit and then do a 0 receipts to match off the credit against the invoice.

Hope this helps.

[emmac]

Thank you, much appreciated