How do you write off a customer balance in Sage using this scheme?
When I tried to use the write off wizard, there was a pop up window warning that this was not recommended using the VAT Cash accounting scheme as the tax code used would mean it not appearing on the VAT return. Should I enter a credit note (to bad dbts) instead or carry on with the first option?
Strange! Where you are writing off a balance, that means there is automatic VAT bad debt relief, so no VAT is due, since the payment is not made.
You could run a credit note, so you are sure the correct entries are being made.
I have always over rode the error message -at the end of the day in cash accounting the only time it hits the vat return us when it is actually paid so if it isn't paid there is no bad debt relief. Not sure why sage gives this message
