Payment for water rates is made by direct debit each month. Sometimes a d/d will clear the balance and there still be some left over and it is treated as a payment on account. When the next payment is made and the quarterly invoice has arrived, when I go to the bank module and click on suppliers, there is the payment on account and the invoice showing. How do I allocate the new payment? At the moment I've allocated it against the new invoice but that payment on account is still there. I haven't reconciled the bank yet because of this in case I need to delete this payment.
The Cash Accounting Scheme may be great for cash flow but is a nightmare to operate when there are direct debits but no invoices. It would be ok if the VAT was straightforward but the amount that is zero rated and the amount that is standard rated varies from invoice to invoice.
__________________
Never buy black socks from a normal shop. They shaft you every time.
Water rates in my area are zero rated so there's really no problem, but for other items like this where part is vatable and part not and you get direct debits the way to match them of is by going through corrections (file>maintenance>corrections) and changing the tax codes so they match, matching off the PAs and amounts paid in the Bank/Supplier, then going back into corrections and putting the correct code against the correct amounts - hope you can understand that, it's a bit difficult to explain in writing easier to demonstrate. It's all a bit of a pain really.
Sage isn't the most forgiving of programs when it comes to correcting things which is why I want to get it right the first time. I don't really understand what you've written. I guess I'll need top play around with it and do a lot of backing up and re-storing till I get it right.
__________________
Never buy black socks from a normal shop. They shaft you every time.
I would just post the d/d T9 until the invoice comes in, and reconcile the bank. When the invoice is received then delete the original payment on account, re-post it and allocate it against the invoice. The re-reconcile the bank at the the same point you did before (the only payment that will appear unreconciled will be the d/d you just posted).
A month on and I still can't get my head round this. It probably is a simple thing (complicated by VAT Cash Accounting) but it is escaping me. How do I match this payment on account to the invoice.
The annoying thing is I don't use VT Transaction for VAT clients for this same reason and now I can't use Sage either.
__________________
Never buy black socks from a normal shop. They shaft you every time.
I'll try again. The problem with Sage is it won't match a payment to an invoice if the tax code is different. You need to first of all look at the invoice and payment transactions and see what the tax codes on them are - this can be done by looking for the transaction numbers in Financials and there you will see the Tax codes. Then you need to go into the correction module and change one of the codes so that both the invoice code and the payment code is the same. Then close corrections and go to the bank module and use bank and supplier as normal to match the invoice to the payment. Then go back into the corrections module and change the tax code back to what it originally was.
A month on and I still can't get my head round this. It probably is a simple thing (complicated by VAT Cash Accounting) but it is escaping me. How do I match this payment on account to the invoice.
The annoying thing is I don't use VT Transaction for VAT clients for this same reason and now I can't use Sage either.
Hi Peasie
What's the problem you have with VT?
It is simpler with VT than Sage. If you apply a payment on account, to an unpaid invoice, it produces a VAT voucher, which is posted to the VAT return. No VAT codes to mess about with.
The only fiddly bit is that you have to split a single payment into two if there is a surplus payment on account
Well, I've finally got this sorted. Any time I had tried changing things in corrections (not related to this) it was very reluctant to. In future I think I'll ask on here as soon as I get a problem - rather than procrastinating and pulling what hair I have left out. So thanks for the help.
VT - the only problem I have with it is in relation to VAT Cash Accounting. I can't really explain it. Everything else about the program I like. Incrementing the date by using the add or subtract button. Being able to change a transaction quickly and easily if a mistake is made - rather than having to delete or reverse a transaction and leave extra numbers all over the place.
__________________
Never buy black socks from a normal shop. They shaft you every time.
