I wonder if anyone could help me with a solution for the scenario below:
I have an Invoice for a piece of machinery that is VATable, I paid the deposit and entered this into Sage through my current account inc. VAT. The rest of the bill will be paid off monthly, similar to HPI. I have a VAT period coming up soon and would like to enter the entire VAT amount before the end of the period but am not sure how to do this without creating an incorrect current account balance.
Invoice Amount: £6,750.00 inc. VAT
Deposit Paid: £1687.50 inc. VAT
Remaining VAT to pay: £843.75
My first thought is to alter the tax position of the deposit I paid so that this takes into account the entire VAT portion. However I am not sure how to do this or if it is even possible? Open to any ideas.
Any help would be greatly appreciated, only my 2nd month using Sage with no book-keeping background so hitting a few stumbling blocks!
Put it in as a supplier (which they are, just not of raw product!) - but when you do make sure to overkey the nominal so that it doesnt go to your normal purchases code. Assuming you are on standard VAT (?) - then that will put it in the VAT return. Then pay off the supplier invoice in the normal was as you make the payments.
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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
