I have a new client (woo hoo!) who uses Sage Instant. I am just taking over his books and want to make sure everything is correct before I start.
There is a customer account which has an overall balance of £204.60 credit. This is an overpayment. The customer was originally invoiced with VAT and paid two invoices with VAT, however they then asked for a credit note to clear the invoices with VAT.
My client raised a credit note and then re-invoiced without VAT, however the customer then paid all the invoices with VAT. Therefore the account now has an overpayment.
My client needs to do his VAT return and wants all the invoices and credit notes cleared and the overpayment left as a payment on account.
My question is how do I do this on Sage? I cannot clear the invoices and credit notes as one has been part paid and they do not balance exactly. My thought was to input a manual journal from the customer as a debit amount for £204.60 and then a credit to the same customer for the same amount, thus having a double entry. Then using the debit entry to clear the invoices and credit notes and leaving the credit entry as a payment on account.
Is it possible to so this in Sage and which screen do I use?
Sorry this post is a little long winded, hopefully you understand what I'm asking.
I don't think you can do a journal to a customer a/c. Are you saying when they made the payment it was allocated to the wrong invoice (to the one with VAT)? Maybe you could delete these transactions and post them again correctly...also if you make a payment and you do not allocate it to any invoice sage will post it as payment on account plus you have the option of using the wizard in bank accounts-customer (where you would post a payment from a customer) there you can allocate payments on accounts to invoices or credit notes to invoices. Also you can use the corrections option in maintenance to see what has been allocated for what.. Hope this helps...
-- Edited by attilabenko on Wednesday 6th of April 2011 03:51:40 PM
Thanks for your reply Attila. There are three invoices in total, all were raised with VAT initially. The customer paid the first two with no queries and then they questioned the third and said they were Vat exempt as they are a University. The first two invoices were cleared with payments in full. The third invoice wasn't cleared, a credit note was raised for each invoice with VAT and issued to the customer along with a new invoice for the full amount of all three invoices without VAT. The customer then decided to pay the third invoice with VAT. This payment was incorrectly allocated to the new invoice and part paid it. I am now left with the following outstanding:
Invoice £446.40 Credit note £437.10 Credit note £437.10 Credit note £446.40 Part cleared invoice originally £1116.00 but now £669.60
leaving a difference of £204.60 credit. I need all the invoices and credit notes cleared from the account with a £204.60 credit left on the customer account as an overpayment.
OK ignore my post above. i have managed to get Sage to show the account with no part paid invoices.
Unfortunately I now have a new problem. When I try match all the items together leaving a payment on account it gives me the message 'There is a mismatch in the net/tax elements of the payments selected. Please ensure the tax codes of any credit notes/payments on account are matched against invoices with which they are to be allocated to.'
My client raised the original invoices and subesequent credit notes so I'm not sure if he has done something incorrect. Any suggestions on where I should check and maybe how to fix it?
There's a mix up in the tax codes, it's nothing you've done, I think.
Something like T0 for zero vat invoices and T1 for vat credit notes. You'll need to amend the T(code) via maintenance so they are the same but adjust the vat as required.
-- Edited by ADAS on Wednesday 6th of April 2011 07:56:54 PM
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Sounds like you are on Cash accounting for VAT. This message comes up when you try to pay a credit note or payment off against an invoice and they have been posted with different tax codes as Tony said.
Ditto, especially when you have a messy set of accounts left by a previous bookkeeper with payments on account that need to be netted off against invoices and they've been posted with different tax codes and VAT reconciled!
