Sage and Payment on Account

Jan Registered Posts: 654 Epic contributor 🐘

I've just started a new job and my predessors had a strange way of posting customer receipts on Sage. We collect rent on behalf of our clients and if the correct amount wasn't received it would be entered as a POA, which when you look on the activity makes it look as if there are a lot of o/s rent invoices, till you realise the receipts haven't been matched up. The person that I have taken over from is no longer there - it was too much for her and she walked out - so I can't ask why it was done this way. It makes it difficult if I want to produce a statement as there are all these unmatched transactions on the ledger.

What I want to do is match the o/s invoices with the POAs, but the year ends have been closed off and I am wondering what effect this will have on the y/end figures, if any. The more I think about it the more unclear it becomes!

Any thoughts would be welcome.


  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    You can match the payments with receipts and it won't make any difference. I have the same with one of our clients and regularly match payments on account this way. To be safe you can put a date in after the year end.

    I would imagine they didn't allocate them because they didn't match exactly but if this is a regular occurence I would go ahead and do what you are proposing to do.
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘
    Hi Jan

    Nice to hear from you again, guessed you were on the move :thumbup:

    I would go with Bluewednesday and allocate to a date after the year end as well. If you allocate back and then have to rerun the aged detors report at the year end again for any reason then although the actual control balance will not have changed the report will look different.

    Lets hope that they got the VAT correct and that you will actually be able to match up:lol::lol::lol:

  • Jan
    Jan Registered Posts: 654 Epic contributor 🐘
    Thanks you two, date after the year end - if I was able to think straight I would have realised that. Sometimes find the more I think about things the more confused I get :blushing:. Maybe it's my age :lol:

    BW Sometimes it was when the exact amount hasn't been received , and sometimes as POA as the rents are due in advance, but then not allocated when the invoice was posted.
    Lets hope that they got the VAT correct and that you will actually be able to match up

    Well yes Poodle there's always that problem, although most of our clients aren't VAT registered. (Only rental income, not trading?) I've seen T0 used where I would have used T9 even though there is no VAT return to do. Anyway I'll give it a go and see what happens.
    One is under partial exemption so that has been something new for me to discover. I had a long email of enquires from the accountant - I asked was this usual and it was as there had been lots of mistakes in the past. I take that as a challenge to get it right first time round! The work was beyond the lady who walked out - I feel sorry for her as there is a lot to do and she obviously didn't understand what she was doing. Not her fault entirely - my new bosses did tell me they realised it was as much their fault, just shows they don't always get it right.

    The move is definitely :thumbup::thumbup:Poodle - no payroll and definitely no CIS!!
  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘

    you need to get a copy of this, treat it as bed time reading for a few weeks then keep it well and truly close to hand

    If you are running Sage and the previous person was unable to cope then you need to make sure that you have enough VAT codes set up to apply input VAT to as you post this will make the reporting and calculations easier.

    You will also need to set up an excel spreadseet for the quarterly returns and annual adjustment.

    I have some experience in this so if you need help PM me


  • Jan
    Jan Registered Posts: 654 Epic contributor 🐘
    Thanks Poodle

    44 pages, think I'll leave it to a night I can't sleep!

    Spreadsheet and codes already set up - I think predessor was on auto pilot, "just do it this way, but no idea why". And then every now and again got it wrong, poor woman.

    Looks like accountant does annual adjustment, very particular, so I'll have to proof to her how good I am (or not!).

    How is your knowledge of shooting, Poodle? They had a VAT inspection a few years ago and now have to charge VAT on the shoots - except they keep forgetting! Oh well at least the reportable adjustment figure has gone up.
Privacy Policy