I only have one client on cash accounting and the bad debts are very rare and quite small. I'm not 100% sure (from memory) but I think I got round it by just issuing a credit note with a "Bad debts" nominal code. I assume by "cash accounting" you're meaning "VAT Cash Accounting" ?
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Never buy black socks from a normal shop. They shaft you every time.
Yes I meant vat cash accounting. I thought to write a credit note against the supplier too , but will use the bad debt nominal code (hadn't thought of that) so thank you
Ive got one to do on VAT cash accounting in Sage...So I plan to use the Credit note and bad debt nominal code. I didnt even think you could do it another way, tbh. What was the message your got Georgie, just out of interest?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
It says: Using this option is not recommended when operating VAT cash accounting mode. All transactions are posted using a tax code that would exclude transactions from the Vat return....Are you sure you wish to continue? 😆
As you are on cash accounting, no VAT has been generated on a return, as its never been paid. If you create a sales credit, and put the net value to the bad debts code, then go into an unused bank account, and clear the credit against the sales invoice, that will tie everything up for you.
Some like to show net bad debt in box 7 instead of box 6 - but I think that's such a faff, so go with the route above.
