That’s all very well, but how does the related 3rd party record the transaction - they will not have any documentation to back up the VAT charge?
I was only trying to explain how VAT works in a Journal Entry. Not enough information has been posted to give an accurate assessment of how it should be handled from start to finish.
Thank you all the matter has been resolved with all your kind support!
Since it’s an adjusting entry, can only be possible by posting a JE.