It is the same treatment regardless of the software you are using. You post the bank receipt to the bad debt provision account, thereby reducing the provision.
Or post to the bad debt written off account, if that's where you put it last year - just use the same code, and if you reclaimed VAT, be sure to declare it again.
Or post to the bad debt written off account, if that's where you put it last year - just use the same code, and if you reclaimed VAT, be sure to declare it again.
Hi
Thanks for you answer.
Two more questions please.
One related to Sage
. Previous I created a bad debt norminal on Sage and I raised a credit note using the bad debt nominal . As I received the cheque from the customer. Should I raise a dummy invoice using the bad debt nominal under same customer ? then post the payment agaist the invoice . or there are better way to do it?
Second related to VAT
. I have claimed VAT on bad debts. As per VAT rules, I should have notified the customer that I had made a claim,but I did not.
Also VAT notice says It need to claim VAT in Box 4 . In Purchase input box not in Sales output box . But I have claimed in Box 1 ( to reduce sales output).
To claim a refund you should include the amount of the VAT you are claiming in Box 4 of your VAT return which covers the date when you fulfil the conditions to make a claim
. Previous I created a bad debt norminal on Sage and I raised a credit note using the bad debt nominal . As I received the cheque from the customer. Should I raise a dummy invoice using the bad debt nominal under same customer ? then post the payment agaist the invoice . or there are better way to do it?
You can either post a bank receipt to bad debt nominal (you might want to rename it, so its say "Bad debt written off (recovered)" or you can post a dummy invoice and clear the receipt against that. As long as it gets where it needs to go, both on the PL and for VAT purposes, it doesnt matter which way you to it, just put some details in to explain.
Second related to VAT
. I have claimed VAT on bad debts. As per VAT rules, I should have notified the customer that I had made a claim,but I did not.
Also VAT notice says It need to claim VAT in Box 4 . In Purchase input box not in Sales output box . But I have claimed in Box 1 ( to reduce sales output).
. Previous I created a bad debt norminal on Sage and I raised a credit note using the bad debt nominal . As I received the cheque from the customer. Should I raise a dummy invoice using the bad debt nominal under same customer ? then post the payment agaist the invoice . or there are better way to do it?
You can either post a bank receipt to bad debt nominal (you might want to rename it, so its say "Bad debt written off (recovered)" or you can post a dummy invoice and clear the receipt against that. As long as it gets where it needs to go, both on the PL and for VAT purposes, it doesnt matter which way you to it, just put some details in to explain.
Second related to VAT
. I have claimed VAT on bad debts. As per VAT rules, I should have notified the customer that I had made a claim,but I did not.
Also VAT notice says It need to claim VAT in Box 4 . In Purchase input box not in Sales output box . But I have claimed in Box 1 ( to reduce sales output).
