UK Legal Fee Invoice

[davidlee]

Hi,

I have a legal fee invoice, relating to the purchase of a company. The total invoice is £6,000 however we will be paying £2,500 and the ex owner will be paying the rest. How can I record this invoice please? Can I enter the total as only £2,500 with closing payment, or do I have to enter the total invoice amount?

Thanks for your help!

 

[bklynboy]

Who is being billed on this invoice and is legally responsible to pay? If the firm is required to pay and there is a separate agreement between your firm to get reimbursed by the ex owner record as a full payable by your firm and full expense. Then reduce the expense and set up a receivable from ex owner.

 

[davidlee]

Who is being billed on this invoice and is legally responsible to pay? If the firm is required to pay and there is a separate agreement between your firm to get reimbursed by the ex owner record as a full payable by your firm and full expense. Then reduce the expense and set up a receivable from ex owner.

Thanks, the ex owner has been billed for this invoice, so he will be settling all of it and we have to pay him £2500.

 

[Fidget]

In that case you shouldn't be recording the invoice. The ex-owner should invoice you for £2,500 and you should just accrue for it until they do. Keep a copy of the original invoice to back up where the charge originates.