I haven't used this scheme before and have inherited a client who does.I have noticed that there are several payments on account and wonder what is the best way to deal with this?
For example, I have identified missing invoices and would normally want to book these and then tidy up the payment allocation by way of a zero payment (then matching the payment on account v the booked missing invoices). Is this still possible? I ask as there is an account which is correct but is full of payments on account (basically £100 per month invoices and payments).....when I try to 'clear down' Sage won't let me. I think some of the payments on account must have been entered as 20% although the invoices are zero.
I have a customer who has made round sum payments on account too. Should I allocate these payments against the oldest invoices in turn or just enter them as payments on account? The client needs monthly statements sent to the customers and I am a bit concerned with how they will look - although I see they have used 'O/S Items only' which probably 'hides' very old balances and payments on account. I don't suppose the payments on account would appear unless I allocate them against oldest invoices.
I realise there needs to be a new mindset when dealing with this type of VAT scheme so any help would be appreciated. How best can you check that the VAT account is in order???
it is more than likely that the payments have been entered at T9 so cannot be matched against the T1 invoice (or T1 payment against a T0 invoice) what I would do firstly is check in maintenance to see what T code each transaction has against it
If there are problems with this you will have to do 'dummy' invoices/credit notes and credit payments to allocate against each one to clear them
