Hi all, well this is my first post on here for some advice that would be much appreciated. I work in practice and have done now for 12 months after some years in manufacturing, so will also hopefully be able to throw my tuppence in when needed, seems like a great forum wish id found you guys sooner!!
Ive taken over some of the Sage bookkeeping for the practice, reconciling the creditors to arrive at the correct year end balance is my struggle point, i have very few supplier statements so am working the best i can with what info i have...
im a little confused with the following though:
1. I have invoices entered onto a supplier account all dated the 1/10/17, telling me they were added for input VAT purposes, however payment was made for these in the previous year 12/2/17 (yr end being 31/3/17). I assume i cant delete as that would affect the VAT for the accounts at year end so is it a case of credit note with T9?
2. Invoices missing from a supplier account relating to year end 31/3/18, i have spoken to the owner of the business who has advised me he can get the invoices but these will be received next week so they will be posted 1st of the month next vat qtr. there are p.o.a on the supplier ledger relating to the invoices so neg balance on my supplier account, i am unsure if i can leave this negative balance on the supplier account but then do i need to accrue for the missing invoices based on the fact they will be received?
thanks in advance for any advice.
-- Edited by Robbi46 on Wednesday 13th of June 2018 10:08:39 AM
Hi Rob
Ive just asked you on your original post to add some more detail around the intro. This will aid answering this Q.
What will also help is knowing what Sage type and version you are working from.
New mantra for you - Never delete unless it really (really really) cannot be avoided. In any software. Never (ever) delete ever if its a prior period end, or something has been VAT or Bank reconciled.
I will have more Qs idc once the intro has been done.
__________________
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
Hi Rob
Thanks for the background update on the other thread, does help. So a few Qs on this one.
Firstly and probably most crucially at this stage do you supply management accounts for these clients/do month end routines in sage?
I'm sure you will have done both perhaps in your previous manufacturing accounts role which then necessitated the very careful input of new items, especially late received invoices, in terms of the date used in your software.
But you may find that the smaller clients do not do such and it really isnt necessary in sage for completion of VAT, although of course it is critical at year end.
So as well as the above (sorry further questions and some might be missed or daft as Im a bit half asleep today!):-
1) Why were the invoices dated 1 October 2017 in sage? What was the date on the actual invoices? Were they indeed related to the payments made in Feb 2017 or could it just co-incidental and these in fact relate to other services? When the payment was made in Feb 17 were the payments just keyed as Bank payments or indeed as payments on account ie so there are o/s items to be matched on the supplier account? Or has someone already matched the payments on account via keying dummy invoices (wrong so wrong!) so these invoices would just stay o/s in perpetuity? What VAT scheme are they on? What adjustments were completed at the year end March 2017 for the lack of said invoices?
2) Why if he gets the invoices next week will you post them on the first day of the next VAT quarter? Has this year end been done yet? I presume not given its only March of this year and if not then why are the invoices not being keyed using the date on the actual invoices, ie the actual tax point, which would surely be within the year end March 18? Note if the invoices are dated after the year end then surely this should be flagged as having an incorrect tax point and they should be re-issued correctly (dont assume all know the VAT rules - Ive just had to pull a supplier of one of my clients for such daft shennanigans).
Apologies in advance also for any typos - not got my glasses! really do need them on a string round my neck but am not keen on the old lady look just yet.
__________________
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
there were all sorts of variations with this in the end.. in a nutshell there were missing invoices which the client was able to source but would of been after the preparation of the year end accounts. It all boiled down to reconciling the VAT in accordance with what had been submitted to HMRC over the 12 months of the accounting period.
i basically made a provision in sage totaling the invoices that were missing and created a separate creditors account which then will be reversed next accounting year to clear down the provision.
Year end March (ie 3 months ago), so why would you not wait a week or two to get said invoices before you tie up the accounts? Such helps to focus the minds of said owner actually doing what they say in getting said documents surely. Plus by then entering them within the y/end the VAT can still be reconciled - you will just have some showing as owing to the VAT man. Also - how have you ensured that there are actual invoices that will match al lof the Payments in advance?
Now if it was really late in the deadline process I might agree. Or of course the usual more relevant reasons behind requiring an accrual.
When you say 'provision' - I assume you mean accual?
__________________
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
as the VAT returns were submitted for the year quarterly, so the invoices would be processed in next financial years VAT returns and subsequently the corresponding accounts.
