I've got a query about the cleanest way to log this on Sage One - or Sage Accounting as it now calls itself... An invoice issued to a client account, with values under 3 sales nominals, has subsequently been paid via cheque, incorrectly issued in the director's name, not the company name. The director took the cheque and banked it in their personal account but hasn't transferred the money to the company (and likely won't!) - so I need to deduct the value from the director's loan account on Sage and mark the client invoice as paid.
What's the best way to record this - a credit note for the value against each nominal, then a journal entry for DLA and the sales nominals? We operate under cash accounting for VAT (which is new to me) so I'm wary of this being incorrectly logged... technically they've paid so we're liable for VAT, but there have been no funds received by the company - so no VAT? Confused!