Does anyone know of a quick way of closing down payments on account to a subcontractor who is CIS registered? SAGE really doesn't like it and will only allow me to either pay the invoices or pay and allocate standard transactions. I need a mixture of the two to close it down :)
Sorry I did not explain myself. No, what has happened is my client has paid some subcontractors in advance of their invoice being delivered so posted into SAGE as payment on account. When the invoice has come in and processed via the CIS module it does the calculation to take off the tax but I am not able to use the payment on account against it as SAGE/HMRC doesn't like it.
I haven't used the Sage CIS version. In my normal version, I post the full supplier invoice (plus VAT if applicable), then a T9 credit note for the CIS deducted - which gets posted to 2210
Just a guess (I've never used the CIS version - and I've not been involved in anything that needs CIS for a good few years) but is it possible that the client in question is on a cash basis for the VAT? I wonder if the problem is caused by Sage being unwilling to allocate differing tax codes?
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
No problem with mis-match of tax codes... using a dummy account, you clear the full invoice as a supplier payment. Then post a supplier refund against the credit. Balance on the dummy account should equal what gets paid from the actual bank account, so when posting that to 1200, you instead do a bank transfer over to the dummy.
Mis-matches are only a problem is you are clearing everything at once. The way round it, is to clear each tax element on its own :)
Alternatively, you don't post a T9 credit, use a dummy account to pay of the gross invoice, do the 1200 transfer for the actual amount paid, and then do a journal to 2210 via the dummy account.
I use Sage CIS Module !!! As far as I am aware sage won't allow you to post a payment on account, or if it does then you won't be able to allocate it. It's nothing to do with tax codes so I don't think the dummy bank account approach will work. As far as Sage and HMRC are concerned you shouldn't be paying a CIS subbies if you haven't got an invoice from them. In their defence they are probably correct. I would suggest that you post a dummy purchase invoice - after all if you've worked out what to pay them you already know the values - then post and allocate the payment so that the CIS deduction is calculated correctly. I would put something in the reference along the lines of 'missing invoice' so it can be identified later. Then once you have received their actual invoice edit the transaction with the correct invoice reference number.
