Just doing bank rec for client and there is a deposit in their bank account - chq paid in with paying in slip. However amount doesn't match anything outstanding so could be a combination of two or more invoice payments. It is from May so holding up bank recs - I have actually chased this several times over the last 4 months. So anyway I am posting a bank receipt to the suspense account so I can carry on and get things up to date, but what VAT Code do I put. All other monies received relate to invoices, so go as customer receipts with T9 and it is most likely this also relates to a customer invoice so VAT has already been accounted for, but do I use T1 and then reclaim VAT once customer known and we can reverse it?
Personally I would do it as T9. If it relates to an invoice already on the system then the VAT has already been accounted for. If it doesn't then you can't account for the VAT until an invoice has been raised.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
You process VAT based on invoices and receipts, not on guesses. If money has been deposited and you do not have an invoice for it then that may not even be a sale (clients often inject cash into their buusinesses) or it may be (where are the missing invoices!).
Check the sequence numbers on the clients invoices for any gaps. Get them to supply an actual or cancelled invoice for every sequence gap.
You say that you have been chasing what this is for four months? VAT is quarterly. What did you do with it for the last VAT return as you must have known that it existed at that stage?
I do appreciate your conundrum as I've had clients myself that avoided some direct questions. Eventually I went with the idea that if they didn't understand where money was coming from then how the hell was I supposed to and just gave them everything back again and told them to find someone else to represent them.
Also payments not matching to invoices is very common. Gets worse when there are part payments and offsets in a combined deposit. You need to get used to handling those and you need to train your client that when you ask for information you expect it to be supplied.
All the best,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Get your customer to ring the Bank and ask them for copies of what was paid in with the slip. Funnily enough I've just asked the very same from a client for an item going back to July! The bank can supply images of the paying in slip and any cheques. Hth
-- Edited by Cheshire on Friday 28th of October 2016 06:35:36 PM
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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
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Tell your client you can't do the bank Rec until they supply the info and that their charges are higher than they need to be cos you have to chase envy thing 15 times!!! Or threaten to go and sit next to him whilst he makes the phone call to the bank, which will in reality take him all of 5 seconds!
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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
