I have reconciled a sales receipt with the bank and have come to do my VAT return and realised the customer concerned should not have been charged VAT. I don't usually use the cash accounting system and thought I would just be able to alter the VAT code as the return has not yet been processed. SAGE wont let me stating that it has been allocated to a receipt and has been VAT calculated. How do I correct this please?
I'd raise a credit note with vat, then refund the customer. Next step, I'd re-raise the invoice correctly and post a new receipt. To keep the bank rec straight I'd contra the refund against the receipt.
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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.
