Hi everyone. I have recently had the dubious pleasure of taking responsibility for the accounting at a small not for profit organisation. I have no proper training on using Sage so I am learning on the job, albeit with some limited support at quarter end and an employee who puts most of the basic transactions on the system but doesn't really understand how things work. My task has been made more difficult by the fact that my predecessor had clearly made numerous errors. I think I have got my head round most of the basics but I have a few of queries.
1. Am I correct that invoices are entered using the relevant VAT codes (zero, standard, exempt, etc) but when those invoices are paid the payment is always put through as T9.
2. Similar but slightly different. Our Gas supplier invoices us quarterly but we pay a standing monthly charge. Am I right in thinking that the quarterly invoice should be entered at the standard rate of VAT and that the monthly charge should be entered as a Payment on Account using T9?
3. If we receive an invoice that details monthly payments for the next year, e.g £720 paid off at £60 a month for the next year, do we have to put that invoice on as £720 when we receive it or can we enter an invoice of £60 each month.
4. Will corrections made to previous VAT quarters automatically be picked up when the next VAT return is run?
Thanks in advance if anyone is willing to help me out.
I think the only time supplier payments offer the tax code is when they are on cash accounting-standard accounting just clears the invoice without asking for the tax code.
The gas-I would process the invoice with the correct vat and yes put the payments on account to the supplier-again if it's cash accounting that would be T1
When you run the vat return always reconcile transactions that way it will pick up any adjustments from previous quarters that weren't picked up
Hi everyone. I have recently had the dubious pleasure of taking responsibility for the accounting at a small not for profit organisation. I have no proper training on using Sage so I am learning on the job, albeit with some limited support at quarter end and an employee who puts most of the basic transactions on the system but doesn't really understand how things work. My task has been made more difficult by the fact that my predecessor had clearly made numerous errors. I think I have got my head round most of the basics but I have a few of queries.
1. Am I correct that invoices are entered using the relevant VAT codes (zero, standard, exempt, etc) but when those invoices are paid the payment is always put through as T9. You would pay through bank/supplier payment and these are processed by SAGE as T9 as the VAT has already been accounted for when you posted the invoice.
2. Similar but slightly different. Our Gas supplier invoices us quarterly but w e pay a standing monthly charge. Am I right in thinking that the quarterly invoice should be entered at the standard rate of VAT and that the monthly charge should be entered as a Payment on Account using T9? Would enter the VAT at whatever the VAT rate on the invoice is. Likely to be lower rate of 5% if gas. Payment again should be entered via bank/supplier payment so the payment can be matched with the invoice.
3. If we receive an invoice that details monthly payments for the next year, e.g £720 paid off at £60 a month for the next year, do we have to put that invoice on as £720 when we receive it or can we enter an invoice of £60 each month. Have to process the invoice when it is dated and account for the VAT then. You then need to either do a journal each month to spread the cost or better still use the prepayment function (though if do this will need to run the month end procedure so the prepayment is run.)
4. Will corrections made to previous VAT quarters automatically be picked up when the next VAT return is run? Depends what the correction is. If you are posting an invoice back to an earlier period then will pick it up on the next VAT return as it wont have been reconciled from a VAT viewpoint. If you go back and amend a transaction that has already been reconciled from a VAT viewpoint then it wont pick that up.
Thanks in advance if anyone is willing to help me out.
