My client has input Purchase Invoices on Sage 50, and occassionally he has put the wrong VAT code, I.e. T1 instead of T0.
He has then matched off a purchase payment against this invoice, so VAT has been incorrectly reclaimed.
What is the best way to correct the VAT so that the next VAT calculation picks it up?
(To make things more awkward, the client has lots of unreconciled VAT transactions going back years, which he says have already been included on previous VAT returns, so I can't use the include unreconciled transactions when calculating the next return, as it will include all the historic data).
Personally, I think his data needs to be re-input from the the start of the year!
Personally, I think his data needs to be re-input from the the start of the year!
Sounds like it! lol
I think the best and least messy way to deal with it is to make a note of all the adjustments that need to be done and add them as manual adjustments to the next VAT return. There is a space to make a note of what the adjustments are.
Thanks Pauline, I was thinking the same. My only fear is that when I pass Sage back to the client, he sometimes likes to get the VAT done straight away, before I get in again to calculate it for him. So I was hoping I could process the changes so if he calculates the VAT it will get included, as I know he will forget to do the manual adjustments!
But I think I may have to put my foot down and tell him not to touch!!!
He's a new client, but he and his accountant have made things so difficult from him not understanding double entry and what happens when he posts an invoice! and his accountant for turning the other way for so long.
Ah right, I was thinking you worked at the client's premises and would be able to input the adjustments for him. You could use the Accountant's Link function although I've not used this myself and not sure how well it works!
Failing this you'll have to put your foot down!
I hate working with messy data though and would be really tempted at the end of the financial year to rebuild your data.
