Opening Balance Tax Code in Sage

Opening Balance Tax Code in Sage

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Hi,

I have a number of Opening Balances for Customers and Suppliers to enter in sage. I used Supplier
Record window to enter the O/B for suppliers. Sage allocate T0 Tax code to them.

Is that correct?

Many thanks for your help.

Replies (5)

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By wrightaccounts
09th Jun 2015 20:24

not what I'd expect, but might be right
There's not enough info in OP to be sure.

T0 will mean transactions could be included in first VAT return run on Sage. I would, normally, setup opening balances with T9 postings.

If you're not VAT registered it won't matter (but if you've told Sage your not VAT reg'd then it should use T9 for everything!), if the transactions behind the opening balances have already been processed for VAT then you will want to be careful when doing the first VAT return and check it only includes what you expect it to.

Thanks (0)
By [email protected]
09th Jun 2015 21:07

Many thanks wrightaccounts

Many thanks wrightaccounts

The accountant submitted the VAT return for Dec-Feb, Then he gave the balances to me. All invoices for these balances are included in Dec-Feb tax return. 

We are VAT registered.

Now as I see all the O/B are marked with 0T. Should I change them to T9?

 

Thank you for your help. 

Thanks (0)
By petersaxton
10th Jun 2015 08:57

What's the end date?

Is the end date 28/02/15?

I would recommend not entering balances but entering the individual invoices, etc. You then use the correct date and invoice number and can manage the ledgers going forward.

T9 is the correct code.

Thanks (0)
By [email protected]
11th Jun 2015 07:58

Thank you petersaxton

Yes the end date is 28/02/15 for the submitted return. 

I take your advice. Thank you very much for that.

 

Thanks (0)
By petersaxton
11th Jun 2015 08:17

Another point with the bank account

It makes it easier to continue the bank reconciliation if you enter the balance per bank statement as one of the entries in the opening balances and any reconciling items separately. 

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