Hi,
When I get the company credit card statements I usually enter the transactions there and then against the correct NC. (Eg £500.00 petrol 7300, £400.00 purchases 5000 and so on)
However when I was on annual leave that months statement came in and a colleague posted the whole lot to the suspense account! (Eg £6000.00 to suspense 9998)
I realise I have to do a journal entry to remove the sum from suspense and post to correct NC's but how do I account for the VAT - what NC do I use?
This may seem like a silly question but it has me stumped!
Thanks in advance for any help!
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You could post as T1 journals and work out the net/gross manually and post the VAT with a T1 to the VAT liability account
It may be easier to just do a reversing journal then post it again correctly.
Vat liability or purchase tax control account as when i do my bank payments with any vat purchases the vat goes to the purchase tax control account and this is how we record the credit card transactions as bank payments
We are not allowed to do reversals, they prefer us to do journal entries... When I post these entries i'll post the petrol to 7300 but then I need to account for vat on that and don't know which NC to use.....
Why?
Why are you having to post journals? Why not edit the transaction that went to 9998 instead?
Anyway, from memory your input VAT will go to 2201, but you will need to overwrite the default of T9 to T1 or it won't be in the VAT Return.
I don't know why we are not allowed Andy. There's a few things we have to do that I'm not yet used to. Thanks for your help though. 2201 is what NC in your mind? Vat liability?
No
I don't know why we are not allowed Andy. There's a few things we have to do that I'm not yet used to. Thanks for your help though. 2201 is what NC in your mind? Vat liability?
2201 is purchase vat. If you post to Vat Liability which is 2202 your entries would not form part of your Vat calculation in Sage.
the entries will be:
Debit the net amount of each cost to the relevant nominal code with tax code T1 (these will then appear in box 7).
Debit the vat amount to 2201 with tax code T1 (this will then appear in box 4)
Then credit the total amount from 9998 with tax code T9.
My sage is 2008 - so things may have changed,
but Sage (at least me version) doesn't pick up a journal - to pick up the vat it has to be given a T number - eg T1 for standard 20% VAT, and I can't do that on journals,
If I journal VAT it won't show on the VAT return and you have to make all sorts of manual adjustments - that's what often causes the VAT reconciliation to be wrong for ages
I would delete the original BPayment - or reverse - and put it in correctly as itemised bank payments - I know OP says reversing isn't allowed - but anything else is likely to mess up the VAT account
Journals
My sage is 2008 - so things may have changed,
but Sage (at least me version) doesn't pick up a journal - to pick up the vat it has to be given a T number - eg T1 for standard 20% VAT, and I can't do that on journals,
V2008 does allow you to assign a tax code to a journal...
John
That will be why I can't find it then - ! -
Which begs the question - which version is our OP using?
It's irrelevant
That will be why I can't find it then - ! -
Which begs the question - which version is our OP using?
As Andy says -
- version irrelevant, any version allows a T code against a journal.
But why isn't credit card set up as a bank account, much easier to enter, you can even download statement as a csv, code out and import to SAGE.
You could also then reverse the payment by a dummy receipt.
Doesn't quite make sense
If you are posting straight away to the expense accounts. How do you account for VAT anyway without the invoices? Surely it will be the exact same process just you have to move the amount from the suspense to the expense account first.
For simplicity's sake - an example:
£600 has been posted to the suspense account for petrol using tax code T9.
Journal will be:
Credit suspense 9999 with £600 using T9
Debit petrol 7300 with £500 using T1
Debit purchase VAT 2201 with £100 using T1