Error in Tax Code entry

[MIA]

Please can anyone help as I'm just learning Sage and getting exhausted in trying to find the correct way to rectifying an error I've made. I posted a suppliers payment as T0 believing that the company was not VAT registered, I have not done the bank reconciliation yet. Is there any way that I can change the code T0 to T1 as it should have been.

I tried to follow instructions from my book by going through the FILE, MAINTENACE, CORRECTIONS, EDIT but then I get a warning stating "Amending this field will cause discrepencies between your VAT return and your Tax Conrol Accounts. Is this going to cause me a problem doing it this way. How should it be done?

If anyone can sort this out for me I will truely be forever in your debt

Many thanks

Mia in London

[MIA]

Hi

I have just received a bit of advice on this subject so thought I would share it with others.

The advice is to go to the File/Maintenance/Edit and just delete. This way it will not complicate the VAT area. I'm not sure if you should make a note of this before doing the delete. Does anyone know if and where you would make notes etc. I am think of just trying to keep the Taxman happy when he sees that something has been deleted.

Kind regards

Mia

[brucedenney]

You cant delete!

If you try it will reverse.

You can do it manually, just enter a credit to reverse the invoice as T0 and then correctly re-enter the invoice.
If you do it manually, you can enter a nice description to explain "Reversal of Transaction 123 entered with wrong VAT code" or "RevTrn 123 Wrng VAT Code".

(WARNING: going into pedant mode)

T0 is not for companies that are not VAT registered.
Well technically tax codes don't apply to companies they apply to transactions. But nor should it be the default Tax Code for them.

The T0 tax code is for transactions that are Vatable but are taxed at the 0 rate. This is stuff like food and books. You will have a VAT invoice (with a VAT registration number) and 0 as the VAT amount.

A supplier who is not registered for VAT is Exempt (because the turnover is low) so is T2 (For some strange reason Stamps are also exempt from VAT and so are T2 as well, but confusingly the receipts from the post office are VAT receipts and they do not separate exempt and zero rated supplies)

For all practical purposes, this make no difference, the VAT office encounter this everyday and as it does not make any difference to the amount of VAT they collect, they really don't seem to care much about it.

(End of pedant mode)

[leftie]

Hi, just installed Sage for the first time & mistakenly put EU Suppliers down as T9 rather than T8.

About to do VAT return but not sure if that mistake will change the bottom line numbers in the VAT return?

If I do need to amend the historic info, bearing in mind I keyed the invoices in at product level, do I have to do a credit (if so how at product level) and then re-invoice, or do I just put a batch credit in & then a batch invoice (for each original invoice). Assume I am best amending system date to match each original invoice when doing this.

Also, for foreign exchange transactions:
We invoice in Euros & US Dollars but have the amounts credited to our sterling account, how do I record any differences in monies paid/received due to exchange rate variances? - have set up virtual dollar & euro accounts on sage.

Thanks in advance

[brucedenney]

Please start a new thread for new issues.

Use error correction to change codes from T9 to T8 where appropriate.