Hi, I have a client with numerous negative debtors and the accountant has asked me to raise invoice against them to clear the negative balances. Is it possible in Sage to do one invoice for the lot or do I need to raise one against each customer?
Hi Mark Late addition to this thread, but hope you dont mind. I have similar situation with my customer not wanting to phone his clients for invoices/credit notes etc. Ive found one statement that shows the balance o/s as low as £2000, whereas in Sage its £22k+ The statement shows a credit note for £20k but I havent got the CN. The client I know isnt keen to get CNs because this then increases his VAT return, and this one especially will have a massive impact as the VAT will be £4k from this one invoice and his VAT bills are normally only around £8k. But I have to key it correctly as a T1 entry, even if Im raising a dummy credit note and lets face it he has had the benefit of the Vat deduction when he received the Purchase invoice initially!
Just wondered if you had come across this before/what your thoughts were Mark and do you always key the missing/dummy Purchase invoices as T1 too (if other invoices have been keyed that way/have other evidence of supplier being VAT registered)?
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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
Joanne - Sounds like tough titty for your client.. if hes had the VAT on the original invoice, he has to suffer the VAT on the credit note. I do not like it when clients put us in these positions. £4k is a lot of poke!
My advice would be to put in a credit note as T1. Run the VAT return and give him the figures. If he wants to change it himself, let him file it.
In the past, if we had found a client hadn't been submitting the details we gave them, we created a VAT suspense to separate it out, and so allow for the VAT liability account to be balanced easily.
Then all you can do for the following quarters, is send out the return figures per sage and keep showing the client the £4k manual adjustment they need to make to correct things. Its up to them if they dont. Just keep evidence of everything.
I know someone will probably chip in that you may have to report him for evasion under such and such rules, but I'm not going to go there.
-- Edited by FoxAccountancyServices on Sunday 14th of July 2013 11:33:11 PM
Thanks Michelle, it annoys me when clients try to put us in this position too. The previous bookkeeper also said to 'try to keep the Vat they same each quarter' - no chance - if I know about it/am given the paperwork then it goes through. Must admit I did feel a bit bad about it but not for too long! I was going to run it by the accountant when they visit next week, which is what I do with any awkward ones I get, then at least I get additional backup when they start commenting!
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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
