Missing purchase invoives from utility company

Missing purchase invoives from utility company

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We have missing purchase invoices from a utility company from September 2014, our prior FY.

My company have paid all the direct debits. The utility company are unable to provide any paperwork due to their own internal IT issues, therefore, how can I close this off on my aged creditors list? I use SAGE 50. I have not claimed any VAT back as the a true purchase invoice has never been received.

Many thanks in advance, Karen

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By TerryD
12th Mar 2015 12:43

I can't answer your question, but

Are you sure that these are genuine company expenses? As an auditor, I have seen three cases where an employee (purchase ledger clerk or a director) set up company direct debits to pay his own utility bills, and, of course, the invoices were always missing from the files.

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By rachelthesageuser
12th Mar 2015 12:53

The simple fix to sort Sage out is to enter a purchase invoice equal to the value of the costs you have paid, but with zero Vat (as you say, you can't claim it without the invoice).   That will sort out your purchase ledger and your P&L.         BUT - that doesn't address the wider problem.  The question of whether its a valid tax deductible expense is one as rightly mentioned above,  but secondly without the bills, how do you know the utility company have charged you the right amount ?   You should be able to check your readings/consumption, the rates charged per unit consumed, and the standing charges.    I would go back to your utility company and tell them they either owe you invoices, or the money back.   If they don't co-operate I would ask for a copy of their formal complaints procedure - that normally gets things moving !

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By KarenLockwood
12th Mar 2015 14:43

Thankyou for advice!

Thanks you for your prompt advice!

 

Yes it is a genuine cost this time, but will look out for any "spurious" issues in the future.

 

Thanks for succinct SAGE solution -I have contacted the company for the fifth time too with a complaint - so hopefully this will help!

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By Roland195
12th Mar 2015 15:17

Claim the VAT

Just my opinion, but you should claim the VAT. There is no absolute requirement to have the VAT invoice with alternative evidence being acceptable. If on the off chance you experience a VAT enquiry, and on the off chance that during that HMRC makes an issue of this, you can obtain the invoices then if you haven't done so already.

The way your are doing it just now definitely has a negative impact on cash flow just now against a negligible risk in the future.

 

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