Supplier cheque return

[angmc]

One of our suppliers has returned a cheque that we had overpaid. I've reversed the payment using the write off/return option & I just need to know when I'm entering the credit (to clear the payment receipt) do I need to account for the VAT or do I just enter the whole amount with a T9 VAT code?

Thanks

[brucedenney]

What version are you on?

Are you on Vat Cash accounting or Standard VAT accounting

The payment was "correct" in so far as you did make it and it did go through the bank so reversing it will not help as you need it to do your bank rec.

You just need to so a supplier refund, if the payment on account was done under cash accounting then VAT should be on it, if not then it should not. The easy way to find out is to look at the payment and see what tax code is on it.

[angmc]

We're on version 15.1 standard VAT. The cheque didn't go through the bank & was returned to us so I just did a cheque return using the write off/refund option this put it back on the suppliers account as a PR so now I just need to clear that with a credit, I just wasn't sure about whether I enter it as a total figure with a T9 code or if I need to account for the VAT using T1, I'm presuming the latter as this was how the original invoice was entered?

Thanks

[brucedenney]

Supplier sent invoice £100
You sent Cheque for £200 and posted it in sage
Suppler Returned cheque.
You undid the posting of the cheque £200 this leaves £100
this will be cleared when you send them the cheque for the correct amount.