I have just taken a set of accounts and the previous Sage user has mis-keyed an invoice, keying it at a lower value than it should have been. The invoice was in the last VAT quarter so VAT has also been included at the wrong amount. The invoice has been VAT reconciled. How is it best to correct this item? As its VAT reconciled is it best to create a dummy PI invoice for the extra amount, thenlink the payment to the original and dummy invoice?
(I would normally use the corrections facility but am worried about using this with it having gone through the VAT reconciled process!)
Thanks in advance
Chesh
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I assume you are on standard vat accounting? I don't think Sage will let you delete a previously VAT reconciled transaction anyway so you probably won't have that option.
Assuming that no payment has been allocated to this invoice yet and the amount has definitely been entered wrongly then I think the best way is as you suggested and create a dummy invoice for the extra amount and then allocate the payment to the invoice and dummy. You can put a note in the Memo section of the supplier account to say what happened.
