Sage 50 - Dealing with bounced cheque

[Transform]

Hi

we are using Sage line 50. We have had a cheque returned unpaid by the bank. Just wondering how i would record this in sage so it takes care of the reversal of VAT etc.

We are using the cash accounting method. We don't use sage to record individual customers, so payment receipts are made as daily receipts using the bank.

Thanks

Stephen

[brucedenney]

In V12 you did not have the customer refund transaction, so you have to do it with 2 transactions.

You post an invoice for "Bounced Cheque" to Mispostings - 9998 and then do a bank payment to 9998. The balance on 9998 should be 0.00 at the start and at the finish.

Because the invoice has been paid the payment will cause the VAT on the original invoice to become due.
To avoid hassle I would let it stand and do both the transactions as T9 and so the VAT will not be accounted for again when the payment comes through.

If you want to get the VAT to not be due now and back to being due on the receipt of payment, then you do both the transactions as T1 with the appropriate amount of VAT on them. The Bank payment offsets the receipt and the new invoice will have VAT on it which will become due when you eventually get payment. You need to make sure that the VAT amount is as on the original invoice/customer receipt.

[Transform]

Thank you