How to journal out of purchase ledger in SAGE

Cordie

I feel like I am asking 20 questions tonight but compared to Quickbooks I find SAGE instants a nightmare.

An invoice was wrongly entered into the purchase ledger and paid from a liability account (it was an intercompany payment).

I need to back out both the Purchase ledger entry and the payment and amend for the VAT.

I was advised the easiest way to do this was to put a credit note against the supplier for the same amount thus dealing with the purchase ledger invoice and adjustment for VAT, however I was then told to pay the credit note off o to speak by a journal between the supplier and the liablility account to get rid of those entries - but I can find no way of linking a journal to the specific supplier, it only gives me nominals to journal too.

Hope this made sense - think I am sinking fast here.

sheelagh

Reverse Purchase Invoice

You can do this as a three step process . I am assuming the intercompany account is set up as a bank account, and that you are using standard VAT accounting.
1) post a bank receipt to reverse payment, using nominal code 9998 (suspense) - use T9 and don't enter anything in the VAT field. This will restore the "bank" balance
2) post an invoice to the purchase ledger account using nominal code 9998, T9 and not VAT. This will reverse the payment
3) post a credit note using the original nominal code and matching the VAT input of the original purchase invoice. This will reverse the invoice and correct the VAT.
The situation is more complex if you are using cash accounting for VAT - let me know.

sheelagh

Reverse Purchase Invoice

Sorry - duplicate posting deleted