Am I being thick ?????? | AccountingWEB

Am I being thick ??????

After several phone calls to different technical support advisors I am beginning to think I am on a different planet as the two common factors (see below) in question will be applicable to 000's of clients and so must have been addressed by Sage ??

Two factors :

1) registered in the Construction Industry Scheme under net status i.e. 20% deduction
2) VAT cash accounting

Where VAT cash accounting is used, Sage will not allow invoices and credit notes to be allocated to each other unless they are posted with the SAME VAT code.

I am needing an easy solution that is manageable by the client and not an accountant !!

Basically the client needs to account for the 20% CIS that their customer will deduct from the payment.

Under standard VAT accounting this wouldn't be a problem because you could raise a sales invoice with a T1 VAT code and then raise a credit note for the CIS tax with a T9 VAT code. But under VAT cash accounting Sage will not allow the invoice and credit to be allocated because of the different VAT codes.

So then I was told that the workaround was to post a customer receipt for the full amount and then post a bank payment for the CIS tax.

The problem with this is that you send the customer a sales invoice with no record of the CIS tax deduction that they have to make and so you can guarantee that because of this some customers will incorrectly pay the full invoice amount without deducting the CIS tax.

Having then spoken to the report designer team I was told that they had never had this query raised previously.

So can someone please confirm that my client is the ONLY Sage customer operating VAT cash accounting in the Construction Industry Scheme !!!!
Paul Dorrington

There are 7 comments. Login or register to view them.

Here on Earth....

cheeeetah |

Yes you are

Chris Smail |
Chris Smail's picture

Answer is another bank account

Ken Howard |

CIS and Sage

daffodil |

CIS deductions in Sage

Anonymous |

VAT on CIS deductions

Anonymous |

No No No

AnonymousUser |