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Sage - Payments on Account - Vat Treatment

I have a client who is invoice accounting for VAT and has received full payment in advance from a customer right at the end of his Vat Quarter.  The sale will take place in the next vat quarter and that is when the sales invoice will be raised. 

If I post a payment on account to the debtors ledger, Sage automatically posts it as T9.

However the Tax Point is the date the payment is received so the Vat on needs to be paid over in the earlier Vat Quarter. 

How do I include the Vat element on the Vat Return whilst still showing the receipt as a payment on account in the debtors ledger?

Thanks in advance

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By Anita14
05th Mar 2019 18:51

I would post a dummy bank receipt dated the same as the customer receipt, accepting it will sit as unreconciled in the bank rec. When the invoice is raised, post a dummy bank payment that will then match off on the bank rec.

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to Anita14
06th Mar 2019 09:49

Thank you - that's a good workaround as it means I won't forget to reverse it when the invoice gets raised as it will be so obvious on the bank rec.

Can't believe that there's no better solution though - it's the first time I've really noticed a shortcoming with Sage.

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