Hi, director paid for equipment before company started, entering those onto Sage and recording a credit note as invoice paid by director, however the credit note does not include the VAT amount so makes his balance less?? Any suggestions
Original invoice was entered as equipment 0022, then I entered a credit note from 2303 directors loan as director paid. Amount was 149.98 (124.99 +24.99 VAT) however the 2303 only showed the 124.99 although the director paid the entire £149.98
Original invoice was entered as equipment 0022, then I entered a credit note from 2303 directors loan as director paid. Amount was 149.98 (124.99 +24.99 VAT) however the 2303 only showed the 124.99 although the director paid the entire £149.98
Thank you
Hi Davina. Sorry, I've been away for a week hence belated reply. When you entered the original invoice as 0022 what was the other side of the double entry?
-- Edited by Leger on Sunday 8th of May 2022 12:00:11 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
1. I would enter the invoice including VAT, (lets say it was £100 plus £20 Vat) the the correct nominal it was purchased against,
2. Then bring £120 into petty cash as a Bank Receipt from the Directors Loan account code, using a tax code that means the bank receipt does not form part of the VAT return, such as T9 in Sage.
3. Then Make a Bank Payment from Petty Cash against the Invoice in full £120.
This clears the Petty Cash out, clears the invoice as being paid and brings in the expense and the VAT, and also puts the Directors Loan Account in Debit by £120
I hope this helps, as I have only logged in recently to see this from April.
Caspar
-- Edited by Caspar on Friday 20th of May 2022 04:30:33 PM
