sales credit ref

System

Hi everyone

I was wondering if anyone can help me

I need to know how to post a sales credit note on to the Sage line 50 (11) in following situations :

1. If it is an old invoice and VAT is done (previous quarter or older period)

2. If the invoice is in current VAT quarter and Sales Ledger has been updated

I looked in sage help and it says something about dummy invoice. I seriously need help.

:?
Thanks in advance
Jav

System

Re:sales credit ref

Can you tell us more about what concerns you with this?
On a basic level it should be a simple case of raising a credit note, either in the INVOICING module or as a Batch Credit in the CUSTOMER module. Both these options will update the customer's account and record VAT correctly.
You can date the credit note for a previous VAT quarter and Sage will pick it up on your next VAT return routine, but I would not advise dating it in the previous financial year. If the VAT on this credit note is £2000 or more you might want to consider VAT voluntary disclosure rules.

Why do you want to back-date the credit note?
What do you mean when you say "Sales Ledger has been updated"


Sheelagh

System

Re:sales credit ref

If the VAT on the credit note is more than £2,000 you HAVE TO INFORM HMRC - compulsory, not just a good idea :shock:

Claudia

System

Re:sales credit ref

Absolutely - I should have made that clearer.

S

System

Re:sales credit ref

Thanks for replying

VAT amount on the invoice is not even £80.
Let me explain again......
This is an internet based business money is received upfront on Card.
Now I would like to know If you have a customer A/c called cash and you record all cash invoices for different customers in that account and allocate them as payment received in bank and 5 months later you need to refund a particular invoice for £200 + VAT, which has been allocated and VAT has been paid in previous quarter. How would you record this credit note (£200+VAT) in SAGE ? as there is not any invoice outstanding.
:?

Jav

System

Re:sales credit ref

Hi Jav

I am with you now - let's hope I get this right.

Put in a credit note against that customer £200 + VAT on tax code T1.

Record the payment as a straight bank payment under nomimal code 9998 (suspense) with tax code T9.

Put in a customer invoice under nominal code 9998 with tax code T9.

Balance off invoice and credit note against each other - ie zero.

This works, and is the only way that I know how to make Sage achieve the end result :roll:

Claudia

System

Re:sales credit ref - VAT Cash Accounting?

I'd do it the same way as Claudia. The only thing you have to watch is if you are using VAT cash accounting.
In Sage, the T codes for two items to be allocated against each other in the sales ledger have to be the same when using VAT cash acccounting.
In this case the customer invoice to 9998 would have to have a T1 code (to match the invoice) but have no VAT ie Net £235 VAT £0, then adjust the total sales on the next VAT return.(Sage will include £235 sales in box 6)

Sheelagh

System

Re:sales credit ref

Thanks for help

I will try this technique for credit notes. Will this effect the montly Bank reconciliation (Cash Accounting)

I am asking so many questions :oops:. I have started a new job, these things are new to me and staff in the office is not very helpful.

System

Re:sales credit ref

The bank reconcilliation should be straightforward.

The only bank entry will be

Record the payment as a straight bank payment under nomimal code 9998 (suspense) with tax code T9.

This should match the cheque or BACS payment you send to the customer.


Sheelagh