I am studying with Sage 50 Accounts workbooks and have their reduced-functionality version of the Professional version software to practice with.
I want to know how to deal with a situation in Sage 50 Accounts where a sales invoice has been raised and posted offering cash discount for settlement within, say, 30 days, and debtor does settle within 30 days so pays less than posted invoice amount.
Example: invoice for goods worth £100 offering 2.5% cash disc if settled within 30 days, VAT at 17.5% on £97.50=£17.06 added so total invoice amount posted is £117.06
Initial entries in Sage: Dr customer account £117.06 and Dr Debtors Control Account £117.06, Cr Sales £100.00, Cr Sales Tax Control a/c £17.06 in nominal ledger.
Customer pays within 30 days so sends cheque for £114.56 (ie £97.50+VAT £17.06) as expected.
When I process this payment against invoice (I set the Program Date to within 30 days after invoice posting date) it leaves £2.50 unpaid on the invoice.
Since I raised the invoice using Sage's in-built invoice creator with the cash disc rate stored in the customer record automatically applied, I really would have expected the Sage s/w to realise what was going on when it was paid, and automatically clear the balance off to Discounts Allowed. Instead, it appears the balance has to be cleared manually and I don't know how best to do this .
I can't find any answer in the built-in help and Sage support won't help me because I haven't subscribed to a proper support package (nice one guys, thanks a lot, I am one of your future sponsors you know! ).
I wonder if it is just a glitch in my training version of the software so my first question is "What happens in the real version of Sage 50 Accounts?".
If it has to be resolved manually, how is this best dealt with?
Only way I can think is to issue a credit note to the customer (using T9 tax code as VAT is correct and don't want adjustment to sales total in VAT return) then pay the credit note against the outstanding amount on the invoice to clear the £2.50 balance in the customer account. This posts a debit to Sales which I don't want, so I then have to journal it off, ie Cr Sales and Dr Discount Taken £2.50.
Imagine the work this would cause in a busy business issuing loads of invoices on a cash discount basis, this just cannot be right! Can anyone shed some light on this?
I have only used Instant but have had a look at AskSage and the its the same for 50 as well.
Open the Bank Accounts module,
From the Bank Accounts toolbar, click Supplier,
Fill in the details - cheque # date etc.
In the Value box, enter the amount of the supplier payment. You don't have to, Sage will automatically fill this when you complet the allocations section
There is a line on the allocations section (on instant, it is the 10th column) that allows you to enter the discount value. In the Discount box on the relevant line, enter the amount of the supplier discount. When you tab out of this box, Sage Accounts automatically enters the difference between the outstanding amount and the discount amount into the Payment box. If you are not fully paying the outstanding invoice, you should amend the value in the Payment Box.
Save as normal
Have you also tried creating a log in for AskSage. I am pretty sure it let me before I purchased any software. It will let you get more in depth answers to queries.
HTH Bill
-- Edited by Wella on Monday 20th of September 2010 08:30:12 AM
So blooming obvious I didn't notice it right under my nose. To be fair to Sage, it is covered in the relevant workbook but under suppliers not customers.
Just read your comments and just wanted to say what a good clear answer that was from Bill. When you enter in the discount column the difference will be automatically debited in the nominal code 4009. Donna
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Donna Curling - Complete Book-Keeping Ltd (CBKLtd) - 07939 101900
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