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Sage Write off help

PortandyPortandy Settling In NicelyRegistered Posts: 15
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

  • sammyd22sammyd22 Well-Known 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.
  • KecakKecak Feels At Home 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?
  • BowdentBowdent Settling In Nicely Registered Posts: 22
    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!
  • PortandyPortandy Settling In Nicely Registered Posts: 15
    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
  • BowdentBowdent Settling In Nicely Registered Posts: 22
    No problem, glad it helped.
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