Sage Help

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi
Please could some one offer some advice. We have an outstanding balance on our creditors that has been there for years. It is there as an opening balance with the vat code T0. This company went into receivership at least 8yrs ago, but has stayed on our accounts. Our accountant has told me now to credit this out,which is fine. My query is that should I credit this to purchases as a T1 vat code as i am pretty sure that there would be a vat element here. Or should i T0 this as the opening balance is. I am feeling i should go with T9, but i would feel better if someone would agree with me.
Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    i believe you should reverse the entry exactly as it was posted. if it had vat on originally, then should reverse this with vat t1 code, you need to check back if you can find the orginal invoice, treat it as a credit note. hope it helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    Hi
    Thanks for that. I have tried looking for the invoice but no one really knows how old it is. the sage system was only set up last year. We know the invoice is at least 8yrs old, but it could be as much as 10. The vat percentage was probably different too.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    does your suppliers account have a record of their vat number on it, on sage, if so vat is deductable, you can ask on the vat website about the vat rate at that point. if not and you can't prove the supplier was registered for vat you should not adjust for vat so all at T0 zero rate.
    hope it helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    Hi
    Thanks for that. I think T1 is correct. It wouldn't bother me too much, but it's quite a large sum. Thanks for all your help.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    your welcome
    an interesting point.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    I take it that the company is on invoice accounting with Revenue and Customs and not cash accounting?

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    I would do all you can to find out about the invoice - you dont want to pay VAT back unnecessarily :shock:

    Does the accountant know?

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sage Help

    Hi Yes we are on invoice accounting and we don't want to pay back any vat that we don't have to.
    I am sure that the accountant would probably be able to find out by going back in time. I may have to speak to him about it, but if it's something i can sort out, it will save us another bill. It doesn't really help not knowing what year it comes from.

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