Where I work we receive monthly rebates on our 0845 tel no which include VAT. I post them as credit notes and to receive the refund I have been asked to raise a sales invoice to allow for the correct treatment of VAT. I just wondered if anyone had any experience of this as by raising and processing a sales invoice I will in effect be cancelling the credit notes issued. Also when the money is actually received I presume I would credit the gross amount to the telephone code? Julie
Hi Julie Where I work we have the same thing and we receive a credit note from our phone company which I post to the purchase ledger (as a credit note) so I dr creditors cr VAT and cr telephone charges. Then when I receive the refund a few weeks later I post this against the credit note on the purchase ledger.
To me it would seem as though the effect of raising a sales invoice from the company you work for and a credit note from your supplier would duplicate the refund on the 0845 number.
Hi Mark, Yes thats what I thought but when I asked our supplier just to send a cheque refund I was informed that rebates are subject to VAT and we have to allow for them properly by raising an invoice? My FD has told me just to raise a manual invoice but not to post it on Sage and when the funds come in post it against the credit note! Thanks, Julie
