Sales and purchase nominal

Caroleanne

Hi, hope someone can help, the person, prior to me has process sales invoices using the purchase nominal, some with the purchase nominal and others with the nominal the same for both, I can correct this, but how has this affected the VAT return.

shamilkaria

Hi @Caroleanne

I hope you are well?

So if they have posted a sales invoice using a purchase nominal, to correct this you could just post a Sales Credit Note to the same purchase nominal, once that is done then enter the Sales Invoice in again using the correct Sales Nominal. However with regards to VAT. When you look at the nominal ledger you will notice that there is 2 Nominal Codes for VAT - Sales (Debtors) VAT and Purchase (Creditors) VAT. You need to check where they have posted the VAT element to. If they have used the incorrect VAT Nominal best advice is to reverse all the invoices posted and correct it, because you need to remember that if it is a purchase it reduces the VAT and Sales would increase it, and if you enter it the wrong way wrong you will end up paying more or less VAT. You could just do journals but you would need to ensure the VAT return is picking these up, cant confirm till you run your VAT return. If there isnt many best advice is credit everything so reverse what was done then post it again.

I hope this helps you out.

Kind regards

Shamil