Am assisting a client with their books, they import goods from china and re sell on the internet.
I am confused with SAGE Instant accounts.
Have DHL invoice - where should I code VAT charged on import and Duty and should I code the administration charge to a seperate nominal code, also what tax codes should I use.
Client has only recently registered for VAT and so need a scenario for both prior to vat registration and once registered.
My thinking was Prior to VAT Registration DHL invoice code to :- Duty - 5101 Import Duty - T9 Import VAT - 5101 Import Duty - T9 Administration Fee - created nominal code 8208 DHL Administration Charge - T9
After VAT Registration DHL Invoice code to :- Duty - 5101 Import Duty - T9 Import VAT - 5101 Import Duty amount as Zero and post amount in T1 code Administration Fee - created nominal code 8208 DHL Administration Charge - T0
Ok next query the materials invoice.
Have the invoice from the supplier do I code this in sage to materials imported 5001 tax code T9 - for both pre registration and post registration. Also the value of the invoice for the accounts I am taking the figure as per the bank, i.e using their exchange rate or should I use exchange rate as per HMRC?
Sorry hope that is clear, like I say be gentle with me posting to these forums is a whole new experience.
I would take the amoutn of the bank statement if you have it, if you do not have it yet but know it is paid then we have set up on the nom ledger 7906 - Exchange rate variance, this is what the accountant told me to do. Its just so that he can spot a difference without having to go through it all. So the difference form the invoice and what you think has been paid with the exchange rate that you think it is, you can post I think its a credit to 7906, to cancel out the invoice withe the difference. I think that is what I did, haven't done one of those for a while now. Hope that makes sense, I always try to take it form the bank statement. Its easier if you can get the supplier to invoice you in GBP, we have managed to get one changed from USD to invoicing us in GBP.
Mine is VAT reg, so this is what I do. DHL Duty 5101 T0 VAT 5101 T1 but put this in the vat column not the NETT column. Admin 5101 T0
I have not set up a separate account fo rthe admin, the accountant said to do it this way thats thats what I do. The VAT element say its a £100 if you put in the VAT column it will get picked up on the VAt return. If you go into the vAT return and click on the purchases you can open it up and check to make sure its there. Thats what I do for a double check.
For the materials I think it should be a T0 code, thats what I do, I'm sure someone on here will correct me if I am wrong.
I would presume before VAT reg it should be a code T9, but like I say mine is VAT reg. Also I keep all the VAT form C79 that comes after the DHL invoice form HMRC, I check the DHL invoice for VAT against this and then keep the C79 in a file for the accountant to check at the end of the year.
Hope that helps. Amanda
-- Edited by Amanda on Thursday 25th of March 2010 01:03:46 PM
-- Edited by Amanda on Thursday 25th of March 2010 01:21:02 PM
Hi Amanda, what you mean by 'VAT 5101 T1 but put this in the vat column not the NETT column".? where I can distinguish the vat column and nett column? sorry I am quite new to sage. Thx
Could you advise me how/where to input the import duty to reflect the cost of product?
I enter the supplier invoice from Purchase Order Processing, and the cost will go to Products(Last cost price standard) so when I enter the customer order from Sales Order Processing, I can check the Profit on that product.
But since I don't pay the Duty to supplier, so seems I can't enter it in the Purchase Order Processing along with the supplier invoice?
