My client has been making personal payments through the Ltd Company. When he has attempted to do his own bank rec he has posted personal payments to a supplier account and claimed vat (cash accounting)
How can I get these expenses from the supplier ledger and also correct the VAT and net purchases on the VAT return?
I could raise a purchase invoice and post it to his directors loan account, but to match it off against the payments on account I will have to use the T1 vat code. So the VAT will then sit in the purchase VAT control account, and the DLA will only be net.
Any advice would be much appreciated. I've been looking at SAGE for too long and getting more in a twist!
Is what you are saying there is payments on account to a supplier account which the VAT has been reclaimed on? If so then i assume the supplier balance is negative?
Would it not just be a case of doing a supplier refund (and do the refund to a separate bank account). When posting this the effect will be to reverse the VAT that has been claimed.
Then do a journal to the separate bank account
Dr Directors Loan
Cr Separate Bank A/C
To transfer the payments to the directors loan account.
I've managed to sort it out like you said. I went to suppliers>supplier write off/refund and it made contra transactions to the payments on account. I've checked the VAT and it has also been treated correctly. Then like you said I posted from the bank to the DLA to clear.
Originally I was trying to use supplier payments to try and write it off, but wouldn't allow negative "cheque" payments.
