I am quite puzzled so would like a little help please.
I have taken over accounts on Sage and in the a suppliers account I have several purchase invoices (PI) and several payments on account (PA). The PI's total the same amount as the PA's. Usually I would click pay in full on the PA then again on the PI's that total that specific payment on account and press save but I am getting the message
'There is a mismatch in the net/tax elements of the payments selected. Please ensure that the tax codes of any payments/credit notes are matched against invoices with which they are to be allocated to'
When I have looked at invoices some have tax code t9 whereas all of the payment on accounts have T0!! Any ideas as to what to do to rectify this?
I imagine that the tax code of the payment on account needs to match the tax code of the purchase invoice that you've trying to allocate it against. Try going into file maintenance and changing the tax code of either the purchase invoice or the payment on account (depending on which transaction has the incorrect tax code).
__________________
Pearce & Co - Chartered Accountant and Chartered Tax Adviser
This error message usually appears when the client is on VAT Cash accounting, you have to ensure that the tax codes are the same when you allocate them as you are.
If the payments were posted directly to the invoice at the time of entry Sage would have dealt with the VAT according to how the invoice had been processed.
It is because the box to enable cat cash accounting scheme has been ticked. You need to check if the supplies on the invoices are out of the scope of vat (T9) or if they are std or zero rated (T1 or T0). All the transactions, invoices and payments then need to have the same code. I would check the client is entitled to be on cash Accounting as there are turnover limits but some ignore this
Hi,
I have checked and it is definitely standard accounting not cash! It seems the payment on accounts are posted as T9's but the expenses are posted under different eg T1 and T0!!
Would I be best changing the payment on account codes if this is possible?
Thanks
If the box for cash accounting isn't ticked in settings then you shouldn't be getting the message. On standard accounting most invoices will be T1 or T0 transactions as that is what denotes the transactions to be included in the VAT return, and the payment will always be T9 so that it doesn't double count transactions. When you say you have checked I'm assuming you mean you've checked in Sage settings rather than checking with the client ? (sorry, i don't mean to make you sound stupid but it wouldn't be the first time someone has said one thing and meant another) - settings, company preferences, VAT tab, and check it says standard accounting
Yes, I checked in the settings and the cash box was definitely not ticked. The client does access sage at times so I will check again but I'm sure they would not have changed anything within the settings. I will keep you posted.
