vat cash accounting

janeth · Post by **janeth** » 19 May 2008, 09:22

I have just changed my line 50 accounts from standard Vat to Vat cash accounting. All is fine but I have just tried to post a supplier payment (which includes a payment on account) and I keep getting the following message. "There is a mismatch in the net/tax elements of the payments selected. Please ensure that the tax codes of any credit notes/payments on account are matched against invoices with which they are to be allocated to" Any ideas?

Post by **brucedenney** » 23 May 2008, 11:53

Tax is now accounted for at the moment you pay the invoice, not the moment you receive it.

This normally happens when toy try paying a T1 invoice using a T0 credit note or something like that.

Are you using an existing payment on account, credit note?

janeth · Post by **janeth** » 27 May 2008, 12:47

Yes i am using a credit note that was entered as a T0 tax code. The invoices I am trying to match it against are T1 tax codes.

Post by **brucedenney** » 27 May 2008, 13:48

Unfortunately you can not match T0 items against T1 items as the VAT codes need to match for the VAT return.

I suggest you change the VAT code on the credit note to T1 and have 0 VAT on it.

If it has not gone on a vat return you should be able to change it in error corrections. Otherwise you need to raise a T0 invoice to 9999 to get rid of it and then a T1 credit note to 9999 with 0 VAt to reinstate it. The T0 invoice will match with the T0 credit and the T1 credit will match the T1 invoice.

janeth · Post by **janeth** » 02 Jun 2008, 09:37

how about when i am trying to match invoices against a payment on account as the PA is a T9 and the invoices are T1?

Post by **brucedenney** » 11 Jun 2008, 13:32

The payment on account will have to be deleted and reposted.

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vat cash accounting

vat cash accounting

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