Help please - Sage query

hmashman

Hi

I need help on how to correct an error I made on Sage. Have asked the Sage help desk but after speaking to a young man for 40 mins. I'm none the wiser.

Its regarding a cash invoice that a customer paid by cheque. I put both these transactions on Sage, however by the time the actual bank statement came through the customer had stopped the cheque. My employer knew about this and said the cancel the cheque and invoice as he would be giving her a new invoice with added work on it.

I deleted the invoice but forgot to delete from the bank statement.
I have since done a VAT return at the end on June 08 which now inclued the bank receipt that was cancelled.

To try and correct this error I've put a Dummy adj debit note on the bank account to the nominal code 9999, so that the VAT will now be able to be claimed back on my next return for September 08.

I need to know if this is correct as I don't want to do anything incorrect regarding the VAT

please anyone in the know please advise.

Thanks
Helen

Monsoon

Ok this is going to take some getting my head round.

Customer Invoice posted. Bank/ Customer receipt (cheque) posted. So far so good.

Invoice deleted on Sage. Therefore customer now in credit as have paid cheque.

VAt return should be irrelevant, unless cash accounting, in which case output vat declared.

And I'm now confused!

Ok this is what I would have done:

Customer invoice. customer payment.
Delete both.

customer balance nil, nothing gone through bank account, no VAT transactions relevant.

Start again with new invoice.

I'm having trouble getting my head round what you've done. First off, what is the bal on the customers account now, and is there a balance on account 9999? Also is it cash accounting for VAT or accruals.

Let me know and I'll come back to you

hmashman

HI

As in my orginal post the cheque was stopped by the customer, and should have been deleted from the bank account by me. However I didn't do this and then included it in a VAT return in error (we are cash accounting for VAT).

So now need help correcting it. Please let me know what you think the correct method should be.

thanks in advance.

PGM

hmashman wrote: »

HI

As in my orginal post the cheque was stopped by the customer, and should have been deleted from the bank account by me. However I didn't do this and then included it in a VAT return in error (we are cash accounting for VAT).

So now need help correcting it. Please let me know what you think the correct method should be.

thanks in advance.

If its already included, do a customer cheque return and the VAT will right itself in the next period.

Then do a sales credit note, and issue a new sales invoice.

Don't know why you needed to do an entry to 9999.