Reverse a payment on account included in Vat Reconciliation - Help!

Hi QuestionSadQuestion

I did not know what a payment was for so entered it as a payment on account (using T0 as the Vat code) against the correct supplier. I then reconciled the VAT without taking a back-up first (as I am a potato head).

Now I know that part of this payment has VAT and I need to add it on to the VAT return but although I have entered the invoices (so the Supplier account is correct) I do not know how to get this VAT onto the SAGE generated VAT return for this already reconciled quarter.

To make matters worse it is year-end so I wanted everything perfect for the accountant!

How do I get the SAGE VAT return to match the actual VAT return please? I have manually adjusted the actual HMRC VAT return so that's fine but I want the SAGE generated returns to "match" at year end. Please help!!

Just to mention - I tried to reverse the payment (per the Help Instructions) so I could just put it through again and settle off the invoices but the error message says it cannot be automatically done as it has been reconciled to the vat account.  If anybody could guide me I would be bery grateful - it's v12 and we use Cash Accounting.

In the "Help" section it says that I can just click on Reverse and it will work..but it doesn't.

Comments
scalloway's picture

Dummy Invoice

scalloway | | Permalink

My solution requires 3 entries

  1. create a dummy invoice using a suspense code to bring the supplier back to the pre receipt balance
  2.  re-do the receipt with the correct VAT code so that it corrects the supplier balance and VAT
  3. do a dummy payment to clear the suspense code

The new receipt and dummy payment will cancel each other out

Sorry

bunnysnap | | Permalink

Hi and thanks so much for replying -I do apologise -  I am now very confused.

The dummy invoice - is this a replica of the original invoice (ie with VAT etc) except just allocated to Suspense nominal code instead of the usual nominal code?

When I pay the Supplier does it come out of my usual bank account? I allocate the payment against the dummy invoice - is that right?

The third bit I don't get - how do I get a payment from the Supplier back to the bank account so my bank account still balances? When you say receipt do you mean the receipt of the payment by the Supplier or the receipt into the bank account?

I've tried drawing it out in T accounts (which usually solves the puzzle) but I still don't get it.

If you could make it any more simple (SAGE for dummies?) then I would be most grateful. Thanks again.

 

Witch-Queen's picture

Reverse a payment on account included in Vat Reconciliation - He

Witch-Queen | | Permalink

1) Raise a batch invoice to the supplier account for the date of the original payment on account, to nominal 9999 using T9. This puts the debt back onto the suppliers account

2) Raise a bank receipt dated the same date, to nominal 9999 using T9. This puts the payment on account back into the Bank and steps 1 and 2 will make nominal 9999 nil

3) Now post the money again against the actual invoices which will allocate the correct VAT. If you have already matched the invoices against the payment on account then post it as a payment on account again using T1 then you will need to go into corrections and amend the net and Vat amount to be right if necessary. You will also need to match the original payment on account and the invoice raised in 1 above against each other 

4) Now re-run the quarters VAT return, it will only show these transactions, and reconcile again.

5) Post the VAT journal or run the transfer wizard using the amounts on the actual submitted return.

6) Match the 2 bank postings against each other in the bank rec.

-- Witch-Queen

Good Witch of The North

bunnysnap | | Permalink

The above has nothing on you!!

Thank-you for the guidance - it worked perfectly.

I am very grateful - thankyou so much :-) :-) :-)

Witch-Queen's picture

Good Witch of the North - East Midlands actually lol

Witch-Queen | | Permalink

Your welcome Bunny,

I did also email you my phone number should you ever need it it the future

-- Witch-Queen

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