Sage Write off help

Portandy
Portandy Registered Posts: 15 Dedicated contributor ? ? ?
Hi,

We have received a partial payment from the liquidators of a company.

We wrote off the invoices in 2008 and reclaimed the VAT.

What transaction should I do to record the payment and recharge for VAT on this partial payment.

I was thinking DR Bank 1200 & CR Bad Debt 8100 to record the payment, but where does the VAT get involved?

Many thanks for any help you can offer.

Comments

  • sammyd22
    sammyd22 Registered Posts: 207 ? ? ?
    Portandy wrote: »
    Hi,

    We have received a partial payment from the liquidators of a company.

    We wrote off the invoices in 2008 and reclaimed the VAT.

    What transaction should I do to record the payment and recharge for VAT on this partial payment.

    I was thinking DR Bank 1200 & CR Bad Debt 8100 to record the payment, but where does the VAT get involved?

    Many thanks for any help you can offer.

    Cant you just re-raise another invoice and allocate the payment to it?

    The Vat will automatically Ctredit the Vat control account for your next return.

    The Bad Debt has already been charged and written off to your p&L in a previous period.

    Have never come accross this personally though.
  • Kecak
    Kecak Registered Posts: 50 ? ? ?
    Cr bad debt write off (N/C 8100) on a T9 with VAT amount
    Dr purchase tax control account (N/C 2201) on a T1 with VAT amount

    If you've already posted the bank receipt (or journals) using 8100 as the write off nominal code, this'll reduce the value on your bad debt code and show the vat reclaimed in box 4 on your VAT return.

    This assumes a few things though.

    How did you 'write off' the 2008 invoice in the 1st place? did you raise a credit to bad debt?
  • Bowdent
    Bowdent Registered Posts: 22 Dedicated contributor ? ? ?
    You've posted this topic twice -http://forums.aat.org.uk/showthread.php?t=26495
    I've posted the answer on it. Please review and let us know your thoughts.
    Please be careful not to double post!
  • Portandy
    Portandy Registered Posts: 15 Dedicated contributor ? ? ?
    Thanks for your help Bowdent.

    To sort the issue I did the following as you suggested:

    Dr Bank (1200) £936.81 T9
    Cr Dep (8100) £797.29 T1
    Cr Sales Tax (2200) £139.52 T1
  • Bowdent
    Bowdent Registered Posts: 22 Dedicated contributor ? ? ?
    No problem, glad it helped.
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