Hi - I am using Sage 50 Accounts and I have made a BIG mistake by importing my SI with the Net and VAT in the wrong columns, so as you can imagine the P & L is abysmal and the VAT Return looks horrendous! It's only 65 invoices so I thought I could go in to 'Transactions' and the 'Edit'. But Sage won't let me save the changes, saying 'This transaction has been allocated against a receipt and VAT calculated, therefore this change can not be allowed'.
I've not completed the VAT Return, although I have run it but not saved it, or reconciled it.
Is there a way to fix this, or am I going to have to restore to pre SI import? Which is actually only the second thing on the monthly tick list, and means I will lose a full days work (which I obviously can't charge my client for??).
There are a few ways I can think of that would address this.
The quickest and easiest - for which you absolutely must keep a note in your VAT file explaining what you've done and WHY - is:
1) Pick a sales ledger account to use as a 'dummy' account - or create an account for the purpose.
2) Post a single credit note to that account for the total amount of the incorrectly posted invoices - but post it the same way in terms of the VAT and net. In other words, if the totals of the imported invoices were £10,000 net and £2,000 VAT, which you've imported as £2,000 net and £10,000 VAT, then the credit note needs to be posted for £2,000 net and £10,000 VAT.
3) Post a single invoice to the same account, and for the same amount - only this time, post the net and VAT correctly. So, using the example amounts above, the invoice should be £10,000 net and £2,000 VAT.
4) Post a customer refund to that account to clear the credit note - using the above examples, that would be £12,000.
5) Post a customer receipt to that account to clear the invoice - again, in the above examples, that would be £12,000
Steps 4 and 5 are necessary if you are on a cash basis for the VAT - if you aren't, you could replace them with:
Alternative 4) Go in as though entering a customer receipt on that account, and allocate the credit against the invoice.
As I said at the top, though - I can't stress this enough - make sure you write up an explanation of what you've done and why, and ensure it is in your VAT file in case of an inspection. (If you use Sage to generate the invoice and credit, you could put that note *on* the invoice and credit).
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Thanks Vince, it's spread across 65 different sales ledger accounts, and my client likes to see Nominal Activity reports so I think my only option is to restore to the end of the previous month, otherwise there's a lot of explaining to do.
Oh well, I've never done it before and I sure as heck won't make the same mistake again.
Time to grab a coffee and just crack on with it I guess.
Oh I feel your pain! My first import I completed with Gross and net thinking the VAT would pick up just by it being T1!! DOH! Fortunately I picked up on it fairly quickly although there was about 2 hours back tracking to do. Bet you get through the pile a lot quicker second time round so heres hoping it wasnt too late into the night!
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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
Thanks Joanne, I certainly won't make that mistake again. You're right, I certainly got through the pile of work quicker the second time, although my bank rec is out by £125 so I am just about to tackle that now.
At the end of the day no-one was hurt, it's not like I messed up the payroll or anything vital! I've lost a few hours of my time, but learned a big lesson!!
