What do I do if I've only paid the Net amount on the invoice and still owe the VAT?

If you've only paid the Net amount on the invoice and still owe the VAT, the first step is to send a second payment to the supplier for the missing VAT. This part is straightforward.

Regarding the recording of these two payments in Scribe, let's consider an example where the invoice was £100 plus VAT. You should have paid £120, but only sent £100 initially and then £20 later.

Technically you have paid a net amount and a VAT amount on both payments. Therefore, we recommend that both payment entries are allocated to the VAT rate on the invoice. If the two payments were made in different VAT periods, then it's essential to split them this way.

Using the example above, both the £100 payment and £20 payment would be recorded as follows:

• VAT rate S: Standard - £83.33 net, £16.67 VAT, £100 total.
• VAT rate S: Standard - £16.67 net, £3.33 VAT, £20 total.

We can see that the total VAT element against each payment correctly equals the £20 as per the invoice.