Post Gross Sales Invoice E.g. £1,175.00 to debtors Code 1100 £1,000.00 to sales Code 4000 £175.00 to VAT Code 2200
The CIS calculation would be as follows: If Gross sales excluding VAT of £1000 CIS tax deducted = 18% x £1000 = £180
Income Received - Assumed via bank, Post bank receipt E.g. £1000 minus CIS deduction of £180 = £820 + £175.00 VAT = £995.00 £995.00 Code 1200 £995.00 Code 1100
Customer receipt - CIS amount of invoice, £180.00 Code 1260 (Post as T1) (New CIS Bank a/c)
Jo, just re-read my post and it should have read 'Post customer receipt' where I say 'Income Received - Assumed via bank, Post bank receipt'. By posting a customer receipt the gross amount will automatically contra against code 1100 (Debtors control account). By then posting another customer receipt for the amount of CIS tax, you will clear down the gross debtor in the sales ledger.
