My client has processed the monthly electricity payments as a bill payment - DR electricity, DR VAT, CR Bank. When he got the qtrly invoices he posted the invoice to the supplier account, debiting electricity and VAT - AGAIN.
What's the best way to fix this on Sage (bearing in mind that the bank is reconciled and the VAT returns are done)?
Replies (7)
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Simple
Put a credit note on to the suppliers account to reverse the invoice. This will repay the vat, incorrectly claimed twice, on you next vat return.
Also
Put a credit note on to the suppliers account to reverse the invoice. This will repay the vat, incorrectly claimed twice, on you next vat return.
I'd add on to this you might want to edit the bank entry with the invoice number or something just so you can tell what's been done.
I'll tell you what
With the two questions you have posed I am already thinking that your client shouldn't be using Sage. You have flattered with your title 'Sage Experts'. It is really 'Sage Basics'.
If they don't have enough about them to either recognise that what they have done is wrong, or be proactive to put it right, I would wager that what you have found might be the tip of the iceberg.
The irony is that they seem to be relying on you and you obviously and understandably don't have a clue either.
If you like them enough and they like you enough, get them onto a system that you understand and can help them to use more easily.
I Agree
.
I don't want to make you feel bad, you need help and hopefully we have been able to help you.
But I agree with Andy, this is very basic stuff, and to have someone dealing with entries to do with VAT and the level of profit a business is to pay its tax on, who doesn't know what they are doing is worrying.
I see this a lot, a business can't afford a book keeper for example, so it asks the receptionist to have a go at the book keeping for them. In the long run, the saving of the book keepers fees will shoot a company in the foot. As the errors the untrained person makes, can cost a business dearly.
I would have thought just about anyone who knows how to use a computer will be able to input figures into a software system with a bit of playing around. But without a full understanding of why they are putting things here or there, they will never be able to resolve problems and errors easily.
Sage training
Training for Sage 50 can be obtained, in online form at least, at fairly modest cost.
Google something like "Groupon Sage training" to find some examples.
With bookkeeping training there are two distinct areas to gain adequate knowledge about:
How to use a particular software packageA general understanding of bookkeeping (eg. distinction between capital / revenue and, when it comes to payments out of a bank a/c, the distinction between nominal ledger/purchase ledger payments
Beyond the above a knowledge of debits and credits is essential so that errors in postings (or omitted postings or duplicated postings) can be identified from a Trial Balance. A lot comes down to years and years of experience so as to pretty quickly identify errors in bookkeeping.
Its a pain isnt it
I get this every so often, where the client has the in house secretary/receptionist/office person, who he gets to take on inputting the information. There are always lots and lots of errors. I went to a clients just last week, and his business has grown, he now has premises and will need regular book keeping, rather than just the year end accounts. I went in straight away with my daily rate charges for book keeping on site once a month onto Sage and he didn't bat an eye. I like to keep control of the figures so that when I prepare the accounts, I am not having to sift through mindless rubbish.