I have looked at other posts and called Sage Helpline regarding this issue but still need a bit of help.
If I am processing a supplier invoice in Sage 50 which includes an early settlement discount, do I have to manually adjust the VAT for the discounted amount I know there is an area within the Supplier record to log the discount terms but it doesn't appear to be calculating it automatically?
The problem I have is that there could be 100 invoices to input and it would take a long time to sit and work out the % of every invoice and input the VAT amount.
I would be grateful for any advice, Many thanks in advance.
If there are numerous entries to be made, and if this will occur frequently, would it not be best to organise the entries on an excel spreadsheet and then import it.
Excel could then calculate the appropriate discount. You could always use a look up table with all the suppliers and appropriate discount.
The problem I have is that there could be 100 invoices to input and it would take a long time to sit and work out the % of every invoice and input the VAT amount.
Am I missing something here?
This is a Supplier's invoice so it should have the VAT on it already.
Have I misinterpreted the VAT rules - the VAT is the same (currently) regardless of whether the offer is taken up or not. I know next May (2015) this will change and for some (telecommunications and television etc) it already applies. But isn't that just the supplier? For the customer there isn't any change - or is there?
I know that when I'm inputting in Sage I keep an eye of the VAT figure it churns out in case it is different because of rounding on the invoice.
Maybe I'm just misinterpreting what you're looking for.
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Never buy black socks from a normal shop. They shaft you every time.
if it is early settlement discount the Vat will be calculated on the figure after discount but the % will be the same, you will have to manually adjust the Vat on the entry to match the invoice thats all when entering it on Sage
When a supplier offers a settlement discount, the amount of vat they enter on their invoice is the amount due relating to the discounted net value.
for example: a supplier offers you a settlement discount of 5% if the invoice is paid within the next fourteen days The net value on the invoice is
£50 (this is the figure that will be discounted), instead of the vat being 20% of £50 (£10) it will be calculated on the net amount you would pay if you took the
offer of early settlement. The net value would be £50 less 5% discount = £47.50 plus 20% vat £9.50 showing the gross £59.50.
If you took up the discount you would pay 47.50 net + 9.50 vat = £57.00 - the vat amount would be the same. It is up to the supplier to amend the vat not the customer.
