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Sage problem has me stumped!

Sage problem has me stumped!

On Sage money received has been allocated to the incorrect customer invoice and to make things worse it turns out that the money received was actually a payment on account and no invoice has actually been issued.  They are also on cash accounting for VAT and this transaction has been included in a VAT Return so cant just be deleted.  Apologies for the rubbish explanation but here are some figures that might make a bit more sense!

Customer A invoice - £10,000

Deposit received from customer B incorrectly allocated against A's invoice -  £5,000

VAT paid £833.33

I need to "move" the £5,000 from Customer A to Customer B and show this as a payment on account in B.

So I need to find a way to reverse out the money received and the VAT as the way they do it (which I know is incorrect but its the first Ive heard of it) may mean they pay the VAT twice because of invoicing the job on completion despite receiving an deposit. 

Any ideas?  Im thoroughly confused trying to work it all out on Sage with all my scribbles of credit notes, temporary invoices etc so thought someone may be able to help!

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07th Mar 2016 12:03

How's about

raising a T9 invoice on company A and coding it to 9999 and raising a T9 credit note on company B also coding to 9999.

This would have the advantage of not fouling up the bank rec. or the VAT account.

 

 

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07th Mar 2016 12:04

Raise an invoice on Customer A for £5,000, with T1 coding, but zero VAT and post to suspense.

 

Raise a credit note on Customer B for £5,000 with t1 coding, but zero VAT and post to suspense.

 

Suspense will balance to zero, customer A will have correct overall total (you might need to manually do statement until cleared). Customer B is now showing a £5k credit.  VAT is correct (I think!) at this point and the VAT will be accounted for on customer B once the invoice is raised and credit note allocated. 

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07th Mar 2016 12:10

Crossing the Ts

To offset a credit note against an invoice, they have to have the same T coding for VAT. Depending on the original T codes you may need to manually zero the VAT figures as per rjoconnor81's post.

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07th Mar 2016 12:11

Corrections

Please back up before you try this!  Go into maintenance, and change the Company A to Company B.  I am pretty sure that this will work.  The only thing that it might do is create extra output and corresponding input VAT on the next VAT return, but the overall figures should remain the same.

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