Prepayments + VAT on Sage Instant - The Book-keepers Forum (UK)

tommysa · Newbie

Prepayments + VAT on Sage Instant

Rainoo · Veteran Member

From how I understand it, the invoice or bank payment is entered in the usual way entering the net amount with the appropriate tax code. You then select the prepayments option on the nominal ledger tool bar and this is where you break down the 3 months' instalments and you do not need to break down the Net/VAT amounts in this part, but by entering the N/C for rent and the prepayment N/C this will action the necessary postings for Dr and Xr Prepayment/Rent.

I think that is how you do it! :)

FoxAccountancyServices · Expert

Prepayments and accruals should be based on net figures. :)

BruceDenney · Senior Member

The VAT is irrelevant as it is claimed back.

s_unas · Member

Hi

First Post the supplier Invoice normal way.

Say January 5th

Dr Rent £ 5100

Dr VAT on Rent £1,020

Cr Supplier £ 6,120

Say Jan 10th

Now for payment made use the Bank Payment option in sage

Dr £ 6,120

Cr Bank Account £ 6,120

Now At the month end

Say Jan 31st Post the Journal

Prepayment Dr £3,400

Rent expense Cr £3,400

Similarly At 28th Feb Post the Journal

Rent Dr £ 1,700

Prepayment Cr £1,700

At 31st March

Rent Dr £ 1,700

Prepayment Cr £1,700

Hope it make sense

Thanks