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How to prepare and Finalize Vat company accounts

How to prepare and Finalize Vat company accounts


My question is when you do the following journals in Sage accounts for Sales when doing a vat return , how do you post cash towards the sales ledger

Example whilst doing a vat return, we produce these in excel and post these journals in sage accounts 

CR Sales      50000

CR Vat         10000


When you come to the bank account postings do you post the following journal when a customer pays an item?

Dr Bank 3000

Cr Gross Sales 3000

How are you suppose to distinguish the customer such as who the 3000 was paid from ? or does it matter

I am not sure this is correct as I am new in practice can someone please explain? As I am use to seeing Trade receivables not Gross Sales 


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09th Dec 2013 14:03

customer accounts in sage

How i understand this is you have all the details in excel but are only entering the totals in sage.

if that is the case then create in sage a cash customer account in the customers tab. enter your invoice details net, vat. this will then post the net sales to P&L, the VAT to Sales vat and you will have a debtor balance.

Any payments you receive from bank/cash account can then go against the cash customer account.

Not the best way to manage debtors.


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By Zam23
09th Dec 2013 14:13

Thank you for the answer, so I will need to post the sales individually into sage by invoice number so i can post payments towards the client accounts.



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09th Dec 2013 14:32

Why cash customer?

Why not post the invoice and receipts to the customer's specific account? Are you posting a monthly total in one go? Why?

There's no journals involved. You use sales invoices and customer receipts. I don't know the terminology in Sage because I don't use Sage now.


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By Zam23
09th Dec 2013 14:45

I'm posting three month of invoices in one go on to sage from a calculation done in excel, that's why we post journals for the Sales to calculate the vat return?

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09th Dec 2013 14:59

My view

I wouldn't call the account anything to do with cash. I would call them "various customers" or something like that.

Personally, I don't use accounts software like this. If I am not using the program properly I would do everything on Excel.

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09th Dec 2013 15:22

Do you need SAGE?

Just wondering why you need to use SAGE as it seems like you are preparing everything in excel anyway? If you are (presumably) using excel for the purchase side as well why not just use that to calculate the VAT? I agree with petersaxton, if you're not using the program to maintain your accounts then why use (& pay) for it?

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By Zam23
09th Dec 2013 16:18


Thank you for the reply , i work in a practice, as it didn't make sense to me, as they have purchases on sage and sales in excel and then post them in to sage ?

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By Trevski
09th Dec 2013 16:46

Don't duplicate the work

If you are going to prepare a sales ledger in excel and then add to SAGE, providing you set up the excel sheet correctly you can import direct into SAGE rather than reposting, this way you will have all the detail for little additional work. However, I don't see why anyone would want to use SAGE but maintain part of the accounts on excel.

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09th Dec 2013 16:48

Seen it before

At a previous job I got told off because I queried why the client had SAGE when they clearly weren't using it and were not interested in using it. Turns out that the firm I was working for had persuaded the client to buy SAGE but had not bothered to train them how to use it. Maybe this is the case, they don't like the software but feel compelled to use it just because they have it?

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