Invoices & Bank Payments Sage 50 2008

Hi,

A bank payment has been put through Sage with VAT for stationary and reconciled in the VAT return.

Then the invoice has been put onto the supplier account and is outstanding on the ledger but this invoice has also been reconciled in the VAT return so the VAT has been reclaimed twice by the bank payment and the invoice.

So how would you go about clearing the invoice from the ledger? Should I do an internal credit note exactly the same as the invoice? Then deduct the VAT amount of next VAT return?

 

Thank you

Comments

Choices    1 thanks

johndon68 | | Permalink

You have a couple of options:

1. As you mentioned post a credit note with exactly the same details as the original invoice and then allocate the 2 in Bank -> Supplier

2. Post a bank receipt with exactly the same details as the payment and then pay the invoice as normal.

 

John

Witch-Queen's picture

Easier still ...    1 thanks

Witch-Queen | | Permalink

The quickest way is just to go to File>Maintenance>Corrections find the line for the invoice posted to the supplier account and delete it

This will automatically correct the next VAT return 

Fmaat's picture

alternative to Withc-Queen    2 thanks

Fmaat | | Permalink

If you want the records on the supplier's account, delete bank payment and post a supplier's payment.

Great

emmac8007 | | Permalink

Thank you all for reply's! didn't realize you could delete a transaction that has been reconciled on a VAT return!!! So that's fab I will delete bank payment if this ever happens again as I would like to keep it on supplier ledger. But I did as John said this time round. Thanks again

Delete VAT Reconciled transaction    1 thanks

johndon68 | | Permalink

Strictly speaking, it does not delete the transaction, it gets reversed and the reversal is what corrects the next VAT Return.

John

Delete

emmac8007 | | Permalink

So I can actually delete something that is incorrect even if it has been reconciled in VAT return? And this wont affect the accounts?

Thank you!!!

So...

emmac8007 | | Permalink

So on the next VAT return I wont need to amend the boxes for this correction?

Thank u

Correct    1 thanks

johndon68 | | Permalink

emmac8007 wrote:

So on the next VAT return I wont need to amend the boxes for this correction?

Thank u

 

The reversing transaction that the Error Corrections routine posts will sort the VAT out for you automatically.

John

Thank you

emmac8007 | | Permalink

Really appreciate your help John

Thank you again!!!

Invoices and bank payments Sage 2008    1 thanks

Carolynne | | Permalink

I have had bad experiences when deleting items which have been vat reconciled, especially (even though not your case), when it related to a prior year.

I always feel safer putting an adjustment through so that the history can be seen and your journal notes will support any queries someone may have in the future. A credit note dated the same would be my advice, this would then contra the duplicated invoice in your next Vat reconciliation quarter, as an item from the past not reconciled. But make a note of why you have put the credit note on, as months down the line, if queries come up it can be awful trying to remember why we have done things. 

If you have allowed for VAT on the bank payment all is well, if you did it all without vat, you would need to make a bank receipt and bank payment for the VAT element as

BR the net amount only (which is reversing the vat element previoulsy put to net amount)

BP the Vat amount only to balance the vat out (which is bringing in the vat that should have been brought in but couldn't be without having the invoice).

Hope this is of help. 

Fmaat's picture

Deleting, bank payment, supplier payment,credit note, adjustment

Fmaat | | Permalink

Forgive me Carolynne, but but there isn't a duplicated payment, there is a payment put through as a bank payment instead of as a supplier payment, and there is not a "credit note" as the supplier has not issued one.

Of 'course an adjustment can be put through too, and to avoid possible scenario of the same person or someone else looking for a credit note from the same supplier six months down the line, I would call these "adjustment notes". 

 Hoping it's helpful.

Thank you

emmac8007 | | Permalink

Very helpful, thank you

Deleting bank bank payment, supplier payment adjustment    1 thanks

Carolynne | | Permalink

Hi

I do sometimes tend to read these things through quickly.  But from the question posed, I understood it to mean that there does seem to be a duplication.  As a bank payment would debit the P & L, and purchase invoice would also debit P & L.  So that the expense would have been accounted for twice?  If using Sage, as far as I am aware, when processing a VAT return, the invoice and the bank payment would have been brought into the figures - twice in the same nominal,  (whether the invoice was paid off or not).  I think this was what I was trying to address.

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