Journal Entry

The situation is this:

Client charges Management Company £75,000 + VAT for appearance fee.

Management company pay £89,825.02 in total as they deducted £174.98 for clothing costs that they had purchased on behalf of the client.

My invoice is of course £75,000 + VAT but now I have £174.98 outstanding on the management company's customer account.

What's the correct way of getting rid of this amount? I do not want to put it through the bank as no physical money was transferred between the parties bank accounts. I also do not want to do a credit note as there is nothing to credit against the clothes account and I also do not want to change the invoice.

Unfortunately, I did not create a proper service invoice within Sage. This would have allowed me to add a discount in the first place. Instead I created a batch customer invoice. I've also run the VAT return for the period this relates so I cannot even delete the invoice and re-do one with the discount as this would screw the VAT records up.

I'm STUCK!

Any suggestions would be greatly appreciated.

Thanks